KUALA LUMPUR: Malaysia’s leading automotive leather upholstery manufacturer, Pecca Group Berhad, posted a 14.2% increase in profit after tax (PAT) to RM15.3 million for the second quarter ended Dec 31, 2024 (2Q25) from RM13.4 million in the same quarter last year, marking a record high quarterly profit.
Notably, the Group’s PAT margins improved to 24.5% in 2Q25 from 20.7% in the previous corresponding quarter, mainly driven by better production cost efficiency and sales mix. Revenue remained resilient at RM62.6 million, registering a minor decrease of 3.4% from RM64.8 million earlier.
Original Equipment Manufacturing (OEM) of leather upholstery car seat covers to automotive players contributed the majority of group revenue at RM53.3 million in 2Q25, expanding 3.1% from RM51.7 million a year ago. The growth underscores Pecca’s leading position with major automotive clientele including Perodua, Toyota, Nissan, Proton, Mitsubishi, and others.
CEO Foo Ken Nee said: “Our record second quarter performance, driven by improved production cost efficiency and higher PAT, provides strong momentum for the second half of the financial year ending 30 June 2025 (FY2025). We continue to strengthen our position as the leading automotive upholstery solutions provider in Malaysia, and are also focused on expanding in key markets and segments. Our efforts include growing our Replacement Equipment Manufacturing (REM) exports, particularly in the United States, and increasing our presence in the aviation industry by pursuing additional certifications for Pecca Aviation Services.”
He added their multi-pronged approach will enable them to capitalise on emerging opportunities and deliver long-term value to our shareholders.
In addition to the robust OEM segment, the Group is making significant strides in its REM segment. The Group’s new export customer in the United States is expected to contribute positively in FY2025, and Pecca intends to further expand its global reach.
Pecca is also optimistic about its progress in the aviation industry through Pecca Aviation Services. The Group is actively pursuing additional certifications from regional aviation regulators, which will be a significant milestone.
For the first half ended Dec 31, 2024 (1H25), Pecca recorded revenue of RM118.6 million, representing a slight 7.9% decrease compared to RM128.8 million in the same period last year. PAT for 1H25 was RM29.9 million, a 13.3% increase from RM26.4 million previously.
Considering the positive first half performance and positive outlook, the Group declared a second interim single-tier dividend of 1.50 sen per share in respect of FY2025, with ex-date on March 10, 2025 and payment date on March 21, 2025.
Pecca is focused on driving growth and creating long-term value for its shareholders through its four key pillars: OEM, REM, aviation, and emerging ventures. These strategic initiatives are aimed at positioning the Group for growth in the dynamic automotive and aviation sectors.
