InstaForex

August 29, 2021

Not the Best Second Quarter for Oriental Food, Net Profit Drops 75%

 Manufacturer of snacks and sweets, Oriental Food Industries Holdings Bhd recorded a decline in net profit for the second quarter ended June 30, 2021.


At 11.18am, Oriental Food's share price declined 4 sen or 0.77% to RM5.13 after hitting RM5.17 at the close on Thursday.


Oriental Food's net profit declined 75% to RM1.08 million from RM4.34 million recorded in the same period last year.


The decline in the profit rate was due to lower turnover and gross profit margins amid higher operating costs.



Meanwhile, the company's revenue also dropped 18.22% to RM60.21 million from RM73.62 previously and earnings per share amounted to 0.45 sen from RM1.81.


The group said its production was running at 60% capacity to comply with standard operating procedures (SOPs) set by the government to curb the spread of the Covid-19 pandemic.


In addition, Oriental Food also experienced a two -week cessation of production rates as directed by the authorities and for cleanup purposes.


Nonetheless, the group hopes that the company's performance can return to positive for the next quarter despite the various challenges faced.