Precision plastics manufacturer Fu Yu Corp has reported a revenue of $35.8 million in its 3QFY2022 ended Sept 30, down from $36.7 million the same period before.
Operating profit dipped slightly from $4 million to $3.9 million, but the company saw a higher net profit figure of $4.7 million, a 42.5% jump compared to the $3.3 million a year before.
This was mainly due to a higher net foreign exchange gain of $1.6 million in 3QFY2022 compared to a gain of S$0.5 million in 3QFY2021, as Fu Yu revealed that it is in a net US Dollar assets position, and the appreciation of the US Dollar against the Singapore Dollar, Malaysia Ringgit and Renminbi in resulted in a higher net foreign exchange gain
Fu Yu said in a release that the global business landscape in 3QFY2022 continued to be weighed down by rising inflationary cost pressures, disruptions in the supply chain and raw material production as well as heightened geopolitical tensions.
In addition, the restriction measures in China triggered by the pandemic continued to pose operating challenges for businesses and affect the country’s economy.
For 9MFY2022, the company reported revenue of $157.6 million, an increase of 47.1% from $107.1 million in 9MFY2021.
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Net profit surged 28.5% to $15.6 million, compared to the $12.1 million in the same period a year ago.
This was attributable mainly to the addition of a new revenue stream from its supply chain management services business, Fu Yu Supply Chain Solutions (FYSCS) which was acquired in July 2021.
The supply chain management services business contributed revenue of $50.2 million to Fu Yu, while its manufacturing business generated stable revenue of $107.4 million in 9MFY2022 compared to $107.1 million in 9MFY2021.
Geographically, higher sales of its Singapore manufacturing operations counterbalanced slight decreases in the sales of its Malaysia and China segments in 9MFY2022.
The Singapore segment recorded revenue of $40.7 million, up 6.8% y-o-y due mainly to higher sales of medical products.
Meanwhile, revenue from Malaysia fell 1.4% to $25.6 million in 9MFY2022 from $26 million a year ago, and revenue from China eased by 4.4% to $41 million in 9MFY2022 from $43 million in 9MFY2021.
Shares for Fu Yu closed at 21 cents on Nov 11, up 0.5 cent or 2.44% higher than its previous close.
