KUALA LUMPUR (May 17): Focus Lumber Bhd posted a 88.92% increase in net profit for the first quarter ended March 31, 2017 (1QFY17) to RM6.26 million or 6.06 sen per share, from RM3.31 million or 3.21 sen a year earlier.
 
In a filling with Bursa Malaysia today, the company attributed increase in earnings to an improved production recovery rate and achieved lower production cost per cubic metre in the current quarter.
 
“In addition, the group had recorded a significant decrease in losses from foreign currency transactions, as compared to first quarter of year 2016,” said Focus Lumber.
 
For 1QFY17, the company registered an unrealised foreign exchange loss of RM112,000, compared with RM2.58 million last year.
 
Its quarterly revenue, however, was down 10.24% to RM47.83 million, from RM53.29 million a year ago, on lower sales volume, as well as lower selling price in U.S. dollar in the current quarter.
 
U.S. dollar selling price of their products has been decreasing moderately since the second quarter of year 2016, said the company.
 
“[The] shortage of logs supply has slight impact to our production process recently. In addition, strengthening of Ringgit Malaysia had reduced our profit margin in overall,” said Focus Lumber.
 
However, the company said it anticipates these situations to not prolong and no material adverse effect on its financial performance.
 
Going forward, Focus Lumber said the company will be continuously working towards improving the quality of the products and reducing average product cost, through investment in new machineries.
 
“Barring unforeseen circumstances, the Board is confident with the group’s prospects for the remaining period of current financial year,” said Focus Lumber.
 
Shares in Focus Lumber closed unchanged at RM1.71 today, for a market capitalisation of RM176.47 million.