fbpx

LKL’s Q1 net profit soars more than 900pct

KUALA LUMPUR: LKL International Bhd’s net profit surged 904.8 per cent in the first quarter (Q1) ended July 31, 2020 from RM124,000 a year ago.

The medical/healthcare equipment provider said this was due to higher sales of medical/healthcare beds and medical peripherals and accessories.

Group revenue increased 106.1 per cent to RM19.3 million in Q1 from RM9.4 million in the previous year’s corresponding quarter.

“Geographically, revenue from the local market leaped 145.2 per cent to RM17.5 million from RM7.1 million previously, as the group emphasised on fulfilling domestic requirements amidst the Covid-19 pandemic.

“As a result, exports moderated 19.1 per cent to RM1.8 million from RM2.2 million last year on lower sales to Africa and the Middle East,” it said.

According to LKL International, the manufacturing segment had contributed RM8.7 million to the revenue, rising 27.4 per cent from RM6.8 million a year ago.

In the trading segment, stronger sales of distributed medical peripherals and accessories accelerated the segment’s topline contributions by 318.9 per cent to RM10.6 million from RM2.5 million in the previous year.

Managing director Lim Kon Lian said following LKL International’s recent achievement of returning to full-year profitability, the group continued to post improved Q1 supported by its diverse portfolio of manufacturing and trading products that caters to the various needs of medical and healthcare institutions.

“While we are prioritising the increasing needs of local hospitals for high quality healthcare products and services such as medical beds and accessories, and personal protective equipment (PPE), we would also continue efforts to build a greater foundation in the export markets through attending virtual events and trade fairs internationally.

“Recently, we were awarded a new contract to supply nitrile examination gloves to a China-based company, Weihai Textile Group Import and Export Co, Ltd, which is expected to significantly boost export sales and overall performance of the group in the current financial year,” said Lim.

Lim also said the positive development underscored the group’s continuous efforts to broaden its portfolio and global clientele, as well as strong capabilities, extensive network and reliability in the healthcare industry.

On September 1 this year, LKL International secured a US$19 million (about RM78.5 million) sales contract to supply nitrile examination gloves to Weihai Textile.

The contract represents not only the group’s first export contract to China, but also its maiden venture into the distribution of examination gloves to the medical and healthcare sector.

Source: NST