Leon Fuat Bhd (Leon Fuat), a manufacturer and trader of steel products specialising in rolled long and flat steel, announced a decrease in revenue for the second quarter ended 30 June 2023 (“Q2FY2023”) to RM217.42 million compared with RM250.93 million for the corresponding quarter of the preceding financial year (“Q2FY2022”).
For the quarter under review, the Group registered a 10.8% decrease in profit before tax (“PBT”) to RM16.09 million compared with RM18.04 million for the Q2FY2022.
Profit after tax (“PAT”) decreased by 15.3% to RM11.88 million for the Q2FY2023 compared with RM14.02 million for the Q2FY2022. The decrease in revenue was mainly attributed to a reduction in revenue for trading and processing of steel products by 23.6% or RM22.79 million and by 6.9% or RM10.60 million respectively.
On a segmental basis, the trading and processing segments saw decreases from RM96.39 million to RM73.60 million and RM154.38 million to RM143.78 million respectively.
Compared with the immediate preceding quarter (“Q1FY2023”), PBT increased by 25.0% to RM16.09 million while PAT increased by 11.2% to RM11.88 million, although the Group reported a decline in revenue from RM233.70 million to RM217.42 million for the Q2FY2023.
For the current year-to-date (YTD 2023), the Group recorded revenue of RM451.12 million, PBT of RM28.96 million, and PAT of RM22.56 million. This is compared with the preceding YTD 2022, where revenue was RM523.95 million, PBT of RM49.85 million, and PAT of RM37.91 million.
Leon Fuat Executive Director Calvin Ooi Shang How said, “As we move forward into the remainder of the fiscal year, our eyes are set on the future. The upcoming commissioning of Phase 2 of our facilities in early 2024 represents a significant stride in our growth strategy. While global economic conditions may present challenges, our robust and diversified portfolio, coupled with our dedication to innovation, positions us strongly to navigate these headwinds. We are encouraged by the underlying strength of our business and remain committed to delivering value to our shareholders. Our confidence in our strategic direction is unwavering, and we anticipate positive momentum in the quarters to come.”
