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Atlan Q3 earnings down on higher expenses, finance costs

14 Jan 2020 / 22:44 H.

PETALING JAYA: Atlan Holdings Bhd posted a 42.5% decline in its net profit to RM7.9 million for its third quarter ended Nov 30, from RM13.7 million at the same time last year on higher operating expenses, finance costs and depreciation and amortisation.

The group’s operating segments also saw lower contributions, which accounted for the lower earnings.

The duty free segment reported lower profit in the current quarter and cumulative quarter due to lower profit margin, absence of gain arising from changes in fair value of option, higher inventory written off, transportation costs and property, plant and equipment written off.

“The property, plant and equipment written off was mainly due to closure of certain outlets in klia2,” the group said in a Bursa filing.

In the automotive segment, the decrease in profit was mainly due to higher labour cost and higher material consumption cost as a result of the weakened ringgit against foreign currencies.

In property and hospitality, the profit drop was mainly due to lower revenue as mentioned above coupled with higher operating expenditure.

Revenue for the quarter however, rose 18.1% to RM254.4 million, from RM215.4 million previously.

Meanwhile, on a cumulative basis, Atlan saw a 44.2% decline in net profit to RM19 million, from RM34.1 million while revenue increased 11.6% to RM620.2 million from RM555.9 million a year ago.

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