KUALA LUMPUR: EP Manufacturing Bhd (EPMB) rebounded to record a net profit of RM2.74mil in the fourth quarter ended Dec 31, 2021 (4Q21), its highest quarterly net profit in seven years, from a net loss of RM876,000 a year ago.

       EPMB said the bottomline strengthened on the back of the group’s strategic measures to streamline costs and improve operational efficiency, as well as lower depreciation and amortisation in the quarter under review as some machineries have been fully depreciated.

       Revenue, however, was 5.5% lower at RM126.8mil as compared to RM134.2mil in the previous corresponding quarter, mainly due to the floods in mid-December which affected many carmakers and their vendors in Peninsular Malaysia.

       For the full financial year ended Dec 31, EPMB posted a smaller net loss of RM8.18mil against RM15.16mil last year. Revenue stood at RM345.41mil, down 15.5% from RM408.87mil in the previous financial year.

       “Our efforts to bring the group back into profitability has begun to yield positive results, although we were impacted by external factors such as movement restrictions, supply chain disruptions and the major floods last year.

       “With the year 2022 expected to be a year of recovery as the government has given its word to avoid nationwide lockdowns, this will be positive for many business sectors, including automotive,” EPMB executive chairman Hamidon Abdullah said in a statement.

       “The vehicle sales tax exemption until June 30, 2022 and a buoyant recovery in car sales are the major catalysts for EPMB.

       “In view of these factors, we are hopeful for a stronger performance in FY2022. However, we remain cautious and believe that challenges will continue to linger in 2022.

       “The group’s performance will be dependent on the market demand for vehicles and Malaysia’s economic conditions,” he added.