Gold price swings take shine off Malaysia’s Poh Kong Q3

Poh Kong Holdings Bhd’s net profit for the third quarter ended April 30, 2018 fell 41.8% to RM4.31 million from RM7.4 million a year ago, as the fluctuation of gold prices affected the group’s operating profits.

Revenue, however, increased 17.2% to RM240.44 million compared with RM205.23 million in the previous year’s corresponding quarter due to the increase in demand for gold jewellery and investment products, and additional revenue contribution from new outlets in the current quarter under review.

For the nine-month period, Poh Kong’s net profit dropped 5% to RM14.48 million from RM15.24 million a year ago, while revenue jumped 18.5% to RM731.35 million compared with RM617.01 million in the corresponding period last year.

The group is optimistic in maintaining its growth and leading position in Malaysia despite more challenging and competitive conditions in the domestic jewellery market.

“Notwithstanding uncertainties in the global and regional economies, fundamentals in Malaysia remain resilient, which have enabled corporate and industry players to meet their challenges and business performance.”

Barring unforeseen circumstances, Poh Kong is confident of its resilience to weather the challenges ahead for financial year ending July 31.