KUALA LUMPUR (March 22): Thermal insulation materials manufacturer Superlon Holdings Bhd reported a net profit of RM3.92 million for the third quarter of its financial year 2024, over six times the RM619,000 it made in the corresponding quarter a year earlier, driven by stronger sales in the manufacturing segment.

Revenue for the three months ended Jan 31, 2024 (3QFY2024) came in at RM30.45 million, up RM18.71% from RM25.65 million in 3QFY2023, its bourse filing showed. Earnings per share rose to 2.47 sen from 0.39 sen.

Superlon announced a third interim dividend of 1.25 sen per share, to be paid on April 26.

Notably, gross profit from its manufacturing division, which contributed about 80.8% of its total revenue for the quarter, jumped RM4.1 million to RM8.9 million due to lower cost of materials and favourable exchange rate movements. The segment also recorded a reversal of impairment on financial assets.

The improvements offset the slight drop in profit at its trading division, where profit before tax halved to RM200,000 from RM400,000.  

The group said its operating environment is improving, with stronger demand in its key markets and relatively lower raw material prices.

"Going forward, demand will be influenced by global and local sentiment, logistic costs as well as raw material costs. In addition, the continuing war in Europe and geopolitical tensions in the Middle East pose a downside risk to the recovery of the global economy.

"Barring any unforeseen circumstances and considering the aforementioned, the board remains optimistic on the performance of our group for the financial year ending April 30, 2024," the group said.

Superlon shares closed two sen or 2.08% lower at 94 sen on Friday, valuing the group at RM149.13 million.