KUALA LUMPUR: Vitrox Corp Bhd
remains cautiously optimistic about its prospects for the final quarter of the financial year ending December 2024 (4Q24), despite the prolonged global economic recovery, currency fluctuations, and intense pricing competition.
The group acknowledged that supply chain disruptions caused by the Red Sea crisis and US port strikes are impacting global shipments and raising shipping costs. However, it stated that it will remain resilient and adaptable while implementing precautionary measures.
ViTrox’s net profit fell 32.5% year-on-year (YoY) to RM22.5mil in the third quarter ended Sept 30, while revenue also slipped 2.2% to RM146.7mil.
It noted that a slow recovery in market demand contributed to a decline in turnover, leading to temporary soft demand for Automated Board Inspection (ABI). It also attributed a significant drop in profits to the weakening of the US dollar, which resulted in notable foreign exchange losses.
The same factors contributed to the group’s 34.8% YoY decline in net earnings for the nine months ended September 30, resulting in RM67.8mil, while revenue decreased by 6.7% to RM403.5mil.
In addition, ViTrox said continuous investment in research and development for the introduction of new products during the first nine months of the year also contributed to the group’s lower cumulative profit.
