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Samurai 2K Aerosal's full-year profit down 10.8% on weaker sales
AEROSOL coating specialist Samurai 2K Aerosol Limited's net profit for the year ended March 31, was down 10.8 per cent to RM10.4 million (S$3.4 million) from RM11.7 million in the year ago period on lower revenue.
Earnings per share for FY2019 was 9.50 sen versus 11.4 sen a year ago. Samurai 2K's shares were unchanged this week since closing at S$0.92 on Monday.
The Catalist-listed company declared a final dividend of S$0.005 per share, compared to a S$0.006 per share dividend payout a year ago.
Revenue dropped 19.3 per cent to RM72.6 million from RM90 million on weaker exports to Indonesia.
Indonesia contributed about RM38.9 million of Samurai 2K's revenue versus close to RM57.9 million a year ago, due in part to "inventory building by buyers in the second half of FY2018 to hedge against currency volatility" and in anticipation of stronger new two-wheelers sales, the company said. (see amendment note)
The board expects the group’s operating environment and condition to be challenging for the next 12 months "given the geopolitical uncertainty that could adversely impact global trade".
With regards to new markets, Samurai 2K said it is still learning to understand the American market better to map out a more effective marketing strategy.
Whereas it has seen more success in India, where it has successfully entered within six months after the first market survey was completed in September 2018.
As at Friday, it has covered four Indian states - Haryana, Delhi, Uttar Pradesh and Bihar.
Amendment note: An earlier version of this article incorrectly stated that Indonesia contributed 39 per cent of Samurai 2K's revenue in FY2019 and 58 per cent a year ago, when in fact Indonesia contributed RM38.9 million of revenue in FY2019 and RM57.9 million a year ago. The article has been amended to reflect this change.