MUDA Holdings Bhd has reported a 53.8% enhance in internet loss to RM12.7 million for the second quarter ending June 30, 2023 (2Q23), in comparison with RM8.25 million internet loss in the identical interval final yr.
The group attributes the widened loss to decrease income ensuing from decreased gross sales and lowered common promoting costs (ASP), accompanied by a 39.9% rise in power prices and a 36.5% surge in finance prices from RM5.6 million to RM7.7 million, influenced by increased borrowings and elevated rates of interest.
Quarterly income of RM346.4 million displays a 20.7% lower from the corresponding quarter within the earlier yr, RM436.6 million.
The decline is attributed to decrease promoting costs for industrial paper, waste paper, and paper-related merchandise, together with softened market demand.
Over the six-month interval, internet loss soared to RM30.2 million in comparison with RM4.02 million internet loss within the earlier yr. Income additionally declined by 19.5% on account of subdued market demand and lowered ASP.
Regardless of world challenges, the group intends to give attention to value administration, effectivity enhancement, and automation initiatives throughout its operations to take care of competitiveness.
The group’s shares remained unchanged at RM1.46, leading to a market capitalisation of RM445 million. – TMR