KUALA LUMPUR: Lotus KFM Bhd registered a lower net profit of RM113,000 in the fourth quarter ended Sept 30, 2024 (4Q24) from RM683,000 a year ago.
This was dragged by the stronger ringgit and treatment of stock first in, first out (FIFO) policy.
In a statement today, the flour maker said the older stocks were bought at higher exchange rates while the sales price was quoted at spot rate.
Quarterly revenue, however, improved 1.42 per cent to RM13.78 million from RM13.59 million previously, driven by initial sales from the company's biomass operations and steady contributions from its core flour and starch trading business.
Its earnings per share came in lower at 0.01 sen compared to 0.07 sen in 4Q23.
For the full year (FY24), Lotus KFM's net profit dropped to RM154,000 from RM2.66 million a year ago, while revenue dropped to RM50.7 million from RM58.51 million.
Lotus KFM vice chairman Datuk Wong Sak Kuan said despite a challenging start to 2024, the company's 4Q24 results reflect resilience and adaptability.
He noted that the initial sales from the company's biomass segment mark an exciting step in its diversification strategy, laying the groundwork for enhanced revenue and profitability in the future.
"We are committed to further improving operational efficiencies and exploring growth opportunities to create long-term value for our stakeholders," he said.
Looking forward, Lotus KFM is optimistic about its prospects, supported by its strategic diversification initiatives, including ventures into sustainable resources such as bioenergy material supplies and forest plantation operations.
The company will continue to leverage its expertise and resources to navigate market challenges and seize opportunities in the coming year.