Prolexus recorded a higher profit before tax of RM24.1 million in 9-month cumulative quarters compared to RM3.9 million in the same period last year.
Prolexus maintained positive operating cashflow of RM2.5 million despite market challenges, showcasing resilience.
Prolexus remains confident, focusing on efficiency, new opportunities, and strategic initiatives for sustained growth and value for shareholders.
Prolexus Berhad (“Prolexus” or “Group”), a leading apparel and textile company listed on the Main Market of Bursa Malaysia, has announced its financial results for the quarter ended 30 April 2023 (“3QFY2023”).
In 9MFY2023, the Group achieved a profit before tax of RM24.1 million, a significant improvement from RM3.9 million recorded in the corresponding period last year, despite a 1.82% decrease in revenue of RM168.7 million compared to RM171.9 million in the same period last year.
For the current quarter, Prolexus recorded revenue of RM48.4 million, a decrease of 7.1% from RM52.0 million in the corresponding quarter of the previous financial year. The decline in revenue was primarily due to lower contributions from the apparel and textile divisions, notwithstanding that there was an increase in revenue from the advertising divisions.
In line with the lower revenue, the Group reported a loss before taxation (“LBT”) of RM13.8 million for the current quarter, compared to an LBT of RM1.1 million in the corresponding quarter of the previous financial year, mainly due to lower revenue from the apparel and textile divisions as mentioned above and fluctuation of other investments’ fair value.
Prolexus Berhad’s Executive Director Mr Tan Eik Huang said: “Although we encountered a decline in revenue during the current quarter, we are pleased to note our Group’s overall positive performance. We remain committed to optimising our operations and identifying new growth opportunities to mitigate the impact of the challenging market conditions.”
Elaborating on the results, Tan said, "We have seen lower revenue in our apparel division mainly due to the challenging market environment, such as the rising inflationary pressure and cost of living. The demand for apparel goods has seen a slowdown as consumers reduce consumption of consumer discretionary goods such as apparel.
While we acknowledge the challenges faced by our apparel and textile division, we are encouraged by the growth achieved in our advertising divisions. We actively explore strategies to revitalise our apparel business and drive future growth."
The improvement seen in the advertising business is in line with the Group’s strategy to diversify its earnings into new growth opportunities.
According to Tan, Prolexus recognised the growing demand for Digital Out-of-Home (DOOH) advertising and with the reopening of the economy, the Group has benefitted from its early penetration into the business.
Another positive takeaway from Prolexus’ financial results is the net operating cashflow of RM2.5 million maintained despite the challenging market environment. The Group has been actively addressing various challenges, including rising interest rates, inflationary pressure on costs, and slower demand in the global economic landscape.
“Our ability to maintain profitability during the 9MFY2023 demonstrates our resilience and ability to adapt to challenging market conditions. We will continue to focus on enhancing operational efficiency and exploring innovative solutions to drive sustained growth.” Tan added.
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