PETALING JAYA: Kumpulan Perangsang Selangor Bhd (KPS) has reported a 19% year-on-year (y-o-y) growth in revenue to RM360.1mil for the quarter ended Sept 30 on steady sales across its manufacturing business and positive momentum in the manufacturing activities locally and globally.

       Operating profit leapt 76% to RM40.4mil.

       Profit attributable to the owners of the parent grew by 59%, settling at RM25.7mil.

       KPS delivered a stronger y-o-y and sequential quarter amidst a challenging operating landscape throughout the third quarter.

       The manufacturing business recorded 23% revenue growth y-o-y, contributing RM319mil to the group’s revenue compared to RM259mil in the corresponding quarter last year.

       At RM319mil, the manufacturing businesses that comprise Toyoplas Manufacturing (M) Sdn Bhd, Century Bond Bhd (CBB), CPI (Penang) Sdn Bhd and King Koil Manufacturing West LLC (KKMW), contributed 89% to the group’s revenue.

       Although revenue from the manufacturing business was higher y-o-y, sales were still impacted by the global integrated circuit (IC) chip shortage, putting some pressure on customer orders.

       Furthermore, the resurgence in the number of positive Covid-19 cases during the quarter has restricted worker mobility to some extent in its plants in Malaysia and Vietnam, affecting production capacity at CBB’s plant in Senai, Johor and Toyoplas’ in Bac Ninh, Vietnam.

       As a result, despite the resilient sales, they were lower than the group’s expectations.

       On higher sales from the industrial tooling division, Toyoplas led the revenue contribution with RM154.2mil, 22% higher than the prior-year quarter of RM126.1mil.

       This was followed by KKMW, contributing RM54mil, 88% higher than the prior-year quarter of RM28.8mil.

       The increase was attributable to stronger sales traction from the new and existing customers, supported by a steady retail sentiment and consumer demand in the United States.

       Operating at only 60% production capacity following mobility restriction on its workers, CBB contributed a revenue of RM51.2mil, 15% lower than RM60.3mil in the prior-year quarter.

       CBB’s paper, carton and offset divisions were the primary revenue drivers.

       Supported more heavily by the healthcare and communication and IT divisions, CPI contributed RM50.4mil, 17% higher than the prior-year quarter of RM43.2mil.

       A further RM30.5mil or 8% of the group revenue was derived from the trading business, represented by Aqua-Flo Sdn Bhd.

       Aqua-Flo’s contribution, which is driven by the sale of water chemicals, was relatively flat this quarter compared to RM29.9mil in the prior-year quarter because of a lower water demand from the industrial and commercial sectors when the movement control order was in effect.

       The licensing business, King Koil Licensing Company Inc (KKLC), contributed RM8.6mil.

       KKLC’s contribution improved by 15% from RM7.5mil during the quarter under review due to higher licensing revenue from international licensees.

       It contributed 2% to group revenue this quarter.

       The remaining revenue contribution of RM2.2mil or 1% to the group revenue was from investment holding and property investment, mainly from rental income from Plaza Perangsang.

       Other income almost doubled to RM15.5mil for the quarter under review from RM4.7mil in the corresponding quarter last year.

       The increase was mainly from property disposal to streamline business operation at Toyoplas, amounting to RM10.4mil.