Pecca Group, a leading supplier of leather for the automotive and aviation industries, has reported an impressive 55.8% increase in net profit for its first quarter ending September 30. The net profit soared to RM13.01 million (US$2.78 million), a significant rise from RM8.35 million (US$1.79 million) in the corresponding quarter of the previous financial year.
This achievement marks Pecca's highest-ever quarterly net profit, extending its track record of record profits and revenues over the past three financial years. The first quarter of the 2024 fiscal year represents the fifth consecutive quarter of setting new profit records.
The remarkable net profit growth is attributed to a robust 16.7% increase in quarterly revenue, reaching RM64.05 million (US$13.72 million), compared to RM54.86 million (US$11.75 million) in the same period a year ago. Pecca highlighted that the surge in revenue is driven by heightened demand for leather upholstery, which contributed approximately 90% of the group's total revenue, and the sewing of fabric car seat covers, contributing around 5%.
Pecca's CEO, Foo Ken Nee, expressed satisfaction with the group's solid financial results and emphasized their commitment to sustained business growth. He disclosed ongoing efforts to expand the customer base in the replacement equipment manufacturer segment, targeting both local and foreign markets in the U.S., Australia, New Zealand, Singapore, and Europe.
“We are pleased to kick off fiscal year 2024 with another set of solid financial results, underscoring our commitment to achieving sustained business growth. This marks the fifth consecutive quarter where the group has set a new net profit record,” he said.
“We will continue our efforts to diversify into new markets and transform the group into a multiple-engine growth ecosystem. Our strong cash position, which has risen to RM112.6 million (US$24.12 million) as of the first quarter, will give us the firepower to catalyse our growth,” Foo added.