KUALA LUMPUR: Automotive upholstery maker Pecca Group Bhd (PGB) posted a net profit of RM10.10 million in the fourth quarter (Q4) ended June 30, 2023 (FY23), compared to RM8.25 million in the same quarter last year.
The higher net earnings were due to better sales of upholstery car seat covers and improved operational efficiency, driving a 23 per cent increase in net profit.
Revenue rose 7 per cent year-on-year (YoY) to RM54.33 million, from RM50.75 million a year ago.
These are PGB's highest quarterly net profit and revenue figures on record.
PGB's net profit margin for Q4 was 18.6 per cent, a 23 per cent increase from Q4 of last year.
The profitability improvement resulted from reduced operating costs and enhanced efficiency for the company's production facilities, in line with PCB's strategic focus on optimising the productivity of its manufacturing process.
For FY23, PCB posted a higher net profit of RM35.43 million, up 55 per cent from RM22.84 million in FY22.
The surge in profit was mainly driven by a 35 per cent YoY rise in full-year revenue to RM221.26 million.
The demand for upholstery car seat drove the company's revenue covers, the sewing and supply of car accessory covers, and the provision of wrapping and stitching services.
Each subsegment contributed about 89 per cent, 4 per cent and 5 per cent of total revenue, respectively.
The original equipment manufacturer (OEM) leather car seat segment contributed about 86 per cent of the total revenue for car seat covers, while the replacement equipment manufacturer (REM) and pre-delivery inspection (PDI) segments contributed about 3 per cent and 11 per cent, respectively.
Chief executive officer Foo Ken Nee said that this is the fourth consecutive quarter in FY23, where PCB has set a new net profit record.
"Demand for high-quality automotive upholstery continues to be strong, and with our key customer, Perusahaan Otomobil Kedua Sdn Bhd (Perodua), projecting sales and production to hit another record high in 2023, this momentum will benefit PCB's first quarter (Q1) of FY24.
"PCB will continue to position itself as the supplier of choice for global and local automotive players, enabling us to ride the wave of rising demand," he said in a statement.
Foo said that in FY23, PCB completed the acquisition of an 80 per cent stake in PT Gemilang Maju Kencana and a new partnership with Aero Cabin Solutions SAS and Global Component Asia.
He said these three developments would help PCB penetrate new markets and catalyse transformation into a multiple-engine growth ecosystem.
"Going forward, we will continue leveraging our key strengths to expand in existing and new markets, focusing on higher-margin opportunities.
"Our robust cash position, which stood at RM111 million as of Q4 FY23, will give us the financial firepower to accelerate growth across the company," he said.