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30 MARCH 2022 AL CIRCLE

LB aluminium records 0.58% loss in 3QFY22 for higher tax provision, but revenue grows by 36.6%

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

LB aluminium, one of the largest suppliers of aluminium in Malaysia, has recorded a decline in its net profit by 0.58 per cent to score at RM14.79 million for Q3 ended January 31, 2022 (3QFY22) from RM14.88 million a year earlier. According to the company's registration with Bursa Malaysia, earnings per share fell to 3.4 sen from 3.42 sen. The decline in profit was mostly due to greater tax provision and loss in its property business.

LB aluminium records 0.58% loss in 3QFY22 for higher tax provision, but revenue grows by 36.6%

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However, revenue for the quarter increased 36.6 per cent to RM197.11 million from RM144.30 million in 3QFY21, thanks to higher average selling prices recorded by the aluminium segment as global aluminium prices surged.

Due to a smaller contribution from its partner, Vistarena Development Sdn Bhd, as well as greater preliminary expenditures spent by the property subsidiaries, LB Aluminium's property sector lost RM1.41 million in the quarter.

The group's quarterly results were bolstered by a good performance from the aluminium sector, which saw a 73.5 per cent increase in profit before taxation thanks to improved margins and an RM4.2 million gain on the sale of manufacturing property and buildings.

LB aluminium records 0.58% loss in 3QFY22 for higher tax provision, but revenue grows by 36.6%

The company's nine-month net profit dropped 13.59 per cent to RM24.66 million from RM28.54 million a year ago, owing to decreased associate contributions and greater preliminary expenditures spent by the property companies.

“We continue to monitor the fluctuations of global aluminium prices and adjust our selling prices whenever necessary to protect our margins,” it added.

Due to higher average selling prices reported by the aluminium segment LB, revenue for the period increased 23.05 per cent to RM470.50 million from RM382.35 million. The existing orders on hand in the aluminium segment, as well as the trend of new orders, are improving.

In the property sector, the firm stated its subsidiary, Pembinaan Serta Hebat Sdn Bhd, aims to debut the Satu Anggota Satu Rumah project in Bandar Tasik Selatan in the second quarter of 2022, with a gross development value of RM634.1 million.

Aluminium LeaderSpeak 2022

On Tuesday, March 29, LB Aluminium's stock fell one sen, or 1.85 per cent, to 53 sen, giving the company a market capitalization of RM230 million.


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EDITED BY : SARNALI CHAKRABORTY 2MINS READ

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