KUALA LUMPUR: Gold jewellery manufacturer and retailer Tomei Consolidated Bhd posted a net profit of RM21.7 million for the first quarter ended March 31 2024, up 71.8 per cent year-on-year.
The company reported a revenue increase of 35.8 per cent to RM322.8 million from RM237.7 million in the same period in the preceding year.
Tomei said this was primarily driven by a robust performance in the retail segment, which surged by 43.7 per cent to RM268.2 million, while the manufacturing and wholesale segment improved by 6.9 per cent to RM54.5 million.
Tomei managing director Datuk Ng Yih Pyng said he is happy with the first quarter results, despite the challenges and uncertainties posed by an ever-evolving economic landscape.
"The retail segment was the main driver of the Group, having contributed 83.1 per cent of the revenue.
"The overall profitability was also supported by greater demand for gold as more people are investing in gold as a hedge against inflation," Ng said in a statement today.
He added that the performance underscores Tomei's strong market position and effective growth strategies in place to deliver value to both its customers and stakeholders.
Earlier at a press conference, Ng said Tomei will open up two additional outlets this year to expand its retail segment.
The company had signed agreements with two malls for this prospect.
Ng also said that the Employees' Provident Fund (EPF) Account 3 will have a positive effect as contributes to consumer's purchasing power.
"The availability of Account 3 will generally assist in retail sales," he remarked.
On gold prices, he said the current trend has been bullish and is expected to remain so for some time.
"I'm not an expert in gold prices, but many reports suggest that gold prices are trending towards US$2,400 per ounce.
"Currently, it is almost US$2,400, indicating a significant increase this year," Ng added.
Despite economic uncertainty, Ng is optimistic about Tomei's profitability.
"Amid the geopolitical problem and the uncertainty of US interest rates, Malaysia's economy is still growing. Hence I feel confident that we should be able to sustain moderate growth," he said.