PETALING JAYA: Three-A Resources Bhd, which is in the business of food and beverage ingredients manufacturing, saw its net profit double in the third quarter driven by higher average selling prices.
For the third quarter ended Sept 30, 2021, Three-A posted a net profit of RM11.97mil from RM5.86mil a year earlier, on the back of a 1.3% increase in revenue to RM115.32mil compared to RM113.85mil previously.
In a filing with Bursa Malaysia yesterday, the group also announced an interim dividend of 2.20 sen per share and a special dividend of 0.8 sen at the entitlement date on Dec 2.Its share price closed 6.5% lower to RM1 apiece yesterday, giving it a market capitalisation of RM492mil.
Three-A said that the Covid-19 pandemic has been challenging, but it remained focused on efficiency initiatives through economies of scale, cost optimisation and efforts to increase productivity and deliver good quality products.
Three-A said it is also on an expansion mode following land acquisition in the vicinity of its factory in Selangor.
“The group is optimistic that its plans would contribute positively going forward.
“Barring unforeseen circumstances, the directors anticipate that the group will achieve a satisfactory performance for the financial year 2021,” it said.
Cumulatively, for the first nine months ended Sept 30, Three-A posted a 77.3% surge in net profit to RM37.94mil from RM21.40mil a year earlier.
Revenue for the period jumped 16.14% to RM373.42mil from RM321.51mil previously.
The group attributed the performance of its bottomline and topline to higher average selling prices and higher quantities of products sold.
According to its annual report, among the main products manufactured by Three-A includes liquid caramel, caramel colour, vinegar, glucose syrup and high maltose syrup.
About 52% of its revenue was generated from Malaysia, about 39% from overseas, and 9% from Singapore.
In its 2020 annual financial report, Three-A said its production plant capacity expansion plans for soya protein sauce and caramel products as well as the relocation of its vinegar production plant that was launched in 2019 had been delayed in light of the Covid-19 pandemic.