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For 4Q2023, the Group achieved RM229.8 million in total revenue, a 2.3% reduction as compared to RM235.2 million in 4Q2022. As for FY2023, the Group revenue decreased by 27.4% to RM914.8 million. At the same time, cost of sales have reduced to RM138.9 million in 4Q2023 and RM619.3 million in FY2023. The Group's gross profit however increased by 28.4% from RM70.8 million in 4Q2022 to RM91.0 million in 4Q2023. Group's gross profit margin improved from 30.1% to 39.6% due to lower cost of sales for the quarter. In FY2023, the gross profit reduced by 34.4% to RM295.5 million as a result of lower average selling price and volume.
The Group's other income increased by 0.3% to RM7.7 million in 4Q2023 and 24.1% to RM31.2 million in FY2023. These are mainly due to higher interest income from fixed deposits.
Selling and distribution expenses decreased by 4.6% and 21.6% in 4Q2023 and FY2023 respectively mainly due to lesser sales activities.
During 4Q2023 and FY2023, general and administrative expenses saw decline of 16.7% to RM7.8 million and 21.2% to RM31.3 million, respectively, primarily attributed to a reduction in performance incentives.
In 4Q2023 and FY2023, other operating expenses reduced by 71.2% to RM1.8 million and 167.3% to RM0.6 million respectively mainly due to lower net foreign exchange gain.
The Group’s effective tax rate decrease to 21.1% in FY2023 as compared to 24.6% in FY2022 as there was a prosperity tax imposed on companies in Malaysia tax jurisdiction in 2022. In 4Q2023, income tax expense increased to RM17.1 million as a result of higher taxable income.
Overall for 4Q2023, the Group's profit before tax and profit after tax increased by 45.4% to RM84.6 million and 60.7% to RM67.5 million respectively. For FY2023, the Group achieved profit before tax of RM279.4 million and profit after tax of RM220.4 million.
As at 31 December 2023, non-current assets which consist of property, plant and equipment (PPE) and deferred tax assets decreased to RM727.1 million from RM742.8 million. PPE decreased to RM726.0 million from RM741.6 million mainly on additions amounting to RM45.3 million coupled with foreign exchange adjustment offset by the depreciation charge of RM60.4 million and PPE written off or disposed. Deferred tax assets (DTA) has decreased to RM1.1 million.
As of 31 December 2023, inventories rose to RM83.2 million from RM82.4 million compared to 31 December 2022, primarily due to a slight increase in production volume. Similarly, trade receivables increased from RM118.2 million to RM128.0 million mainly due to slower collections.
Cash and cash equivalents decreased to RM875.4 million as at 31 December 2023 from RM1,066.1 million as at 31 December 2022. For the 4Q2023, the Group generated RM105.8 million of net cash flows from operating activities and net cash flows used in investing activities amounting to RM21.3 million were mainly for the purchase of PPE. The Group has net cash flows used in financing activities in 4Q2023 amounting to RM148.2 million for dividend payment.
Current liabilities decreased to RM84.6 million as at 31 December 2023 mainly due to lower payables and accruals. Payables and accruals reduced to RM71.5 million as at 31 December 2023 from RM84.9 million as at 31 December 2022.
Non-current liabilities reduced to RM59.1 million as at 31 December 2023 from RM60.7 million mainly due to the reversal of deferred tax liabilities.
The persistent oversupply of gloves remains an issue for the Group. Alongside price competition, currency fluctuations, unpredictable raw material prices, and rising production costs, the business faces challenges in its growth trajectory.