KUALA LUMPUR: Rex Industry Bhd
will continue to focus on improving the efficiency of operations as well as introduce measures to minimise the operating costs and where possible to keep costs under control.
“The group will continue to focus on improving the efficiency of operations as well as introduce measures to minimise the operating costs and where possible to keep costs under control.
“In this regard, the group will review monthly expenditures, seek more competitive prices of raw materials as far as is possible and implement
other operational cost reduction initiatives,” the canned food manufacturer said in a Bursa filing.
Rex said it would also explore outsourcing certain products to third parties to drive operational efficiencies and cost optimisation.
“The group is also considering additional capital investment to upgrade and enhance current production facilities. We will continue to invest in our brands and product innovation to drive sustainable growth,” it added.
Rex expects the next six months to remain challenging as a result of the volatile economic conditions due to continued inflationary pressures, uncertainty in commodity markets and the recent disruptions of financial markets in United State and Europe.
It said the upsurge in utility, labour and raw material costs were additional headwinds plaguing the business.
In the third quarter ended March 31, Rex posted a net loss of RM1.81mil, or loss per share of 0.29 sen against a net profit of RM539,000, or earnings per share of 0.11 sen in the same quarter last year.
Its revenue for the period fell to RM36.1mil from RM39.5mil a year prior.
In the first nine months to March 31, Rex posted a net loss of RM5.64mil on revenue of RM125.13mil.
