KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) reported RM1.1 billion revenue in 2020, setting its new financial milestone by surpassing the RM1 billion mark.
For the fourth quarter ended December 31, 2020, KPS posted revenue of RM318.6 million, higher than the pre-Covid-19-revenue it recorded in the corresponding quarter last year of RM297.2 million.
The RM1.1 billion was 24 per cent higher than the RM866.8 million revenue it recorded in 2019.
The company said the steady revenue growth during a period of uncertainty was a show of its success in balancing the tactical decisions needed to build operational and financial resilience while staying focused on its long-term strategic goals.
KPS' net profit almost doubled to RM26.9 million from RM16.1 million in 2019.
KPS managing director and group chief executive officer Ahmad Fariz Hassan said the steady growth in revenue was the result of its agility in navigating the operating challenges such as disruption in supply chains and customer demand.
"With our continuous efforts in ensuring the continuity of our operations, we have strengthened our business resilience.
"We have assessed and responded quickly to these disruptions, ensuring the adaptability of our production with optimised inventory planning.
"To this effect, our manufacturing arm has been the main and steady contributor to the group's revenue even in a volatile operating environment," he said.
Ahmad Fariz, however, said the impact of the pandemic on the group's manufacturing business was more permeating given the exposure to the vagaries of external factors that were beyond its control.
"For instance, the earlier decline in demand for most raw materials during the early months of the pandemic had caused many suppliers to reduce capacity.
"This is now resulting in limited supply and higher prices of many raw materials such as thermoplastics, copper, aluminium and steel products.""
In addition, supplier deliveries continued to slow as the impact of the pandemic has curtailed the capacity of the global and Chinese shipping markets due to labor shortages, he added.
KPS said having managed business continuity and business resilience in 2020, in 2021, the focus would be on recovery, strategising on how it can thrive on new possibilities.
"To drive this, we shall continue with the long- term strategic goals that include further improvement in operational efficiency, penetration into new market segments and expansion of product mix and services across the subsidiaries.
"While the impact of Covid-19 is expected to present continued challenges given the recent rise in number of infections, our resilience in critical areas such as customers, cash flow, supply chain, workforce, digital enablement and safety at workplace has enabled us to navigate the complexity with more agility," he said.
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