KUALA LUMPUR: Garment maker Magni-Tech Industries Bhd reported increased sales in the first quarter ended July 31, but Covid-19 restrictions at production sites in Malaysia and Vietnam have clouded its outlook.

       Higher paper and plastic raw material costs also cut profits at its packaging division during the quarter, the company said in a filing today.

       Magni-Tech said net profit fell 21% to RM21mil, while revenue improved 4.6% to RM305.6mil.

       The group's production facilities in and around Ho Chi Minh, in Vietnam have remained suspended since July 22 due to the extension of lockdown. The current shutdown was set to expire on Sept 15.

       "There is a positive change in Vietnamese government strategy to emerge from a strict and prolonged lockdowns and resume economic activities after September 15, shifting from its Zero Covid 19 strategy to living with viruses," the company said.

       "In anticipation of gradual reopening of Vietnam's economy from strict lockdowns, the management is proactively working with various local authorities for the reopening of production facilities while establishing SOPs for the factory management, systematic and regular Covid-19 test for all workers, and most crucially to procure Covid 19 vaccines for our workers to safeguard the health and safety of all our workers," it added.

       Magni-Tech said it is engaging with customers very closely on order status, its mitigation and ramp up plans.

       The group, however, said it was not in a position to quantify the potential financial impact of the Covid-19 disruptions.