Supermax Significantly Narrows Losses For The Quarter But Still Wary

Supermax released it first quarter results for the year with revenue declining to RM143 million compared to RM175 million the group achieved in the preceding years quarter.

The group sad the slight decline in sales as the industry continues to recover from a sluggish few quarters due to the weak demand globally. However, quarter to quarter, it noted an improvement in profit margins, as a result of: Better cost management by focusing on more efficient production lines, and shut down of old and non-efficient lines.

Q1 also saw Supermax remain in the red recoding a loss of RM686,000 which is much lower than the RM39 million in losses the group endured in the year before.

As for outlook, Supermax Group sees orders from customers are gradually increasing but at low market prices. However, for 2024, the Group still does not anticipate a significant improvement in performance due to the high volume of high-priced stocks at its overseas distribution centres. The Group continues to practise cost rationalisation to improve the Group’s profitability but the high material costs and costs of utilities currently and going forward are expected to result in continued margin squeeze.

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