Atlan Holdings quarterly performance improves

PETALING JAYA: Atlan Holdings Bhd is keeping a cautious stance on its prospects, stemming from the ringgit’s weak standing against a basket of other currencies, despite acknowledging that there are indications of an ongoing economic recovery.

The group said the delicate level of the local note has contributed to escalating product and operating costs, on top of inflationary pressures and projected prudent consumer spending habits, while reiterating its commitment to enhancing operating efficiency.

The group, however, managed to chalk up a 9.5% year-on-year (y-o-y) rise in net profit for its third quarter ended Nov 30, 2023 of financial year 2024 (3Q24) to RM6.5mil as revenue escalated 19.1% y-o-y to RM117.2mil.

Cumulatively, for the nine months ended Nov 30, earnings similarly increased by 16.2% y-o-y to RM15.3mil as turnover also jumped 23.3% y-o-y to RM324.9mil.

In a filing with Bursa Malaysia yesterday in conjunction with its results release, Atlan attributed the positive showing for the first three quarters to higher orders from customers in its automotive segment, while its investment holding segment also garnered improved net gains in foreign exchange throughout the fiscal year.

Notably, however, it reported a decrease in net profit for the quarter and nine months for its duty-free business, attributing it to a lower revenue during 3Q24, coupled with other reduced operating income and higher employee benefit expenses.

Meanwhile, compared with the preceding quarter ended Aug 31, 2023, earnings surged 71.3% from RM3.8mil, as turnover also rose by 10.6% quarter-on-quarter (q-o-q) from RM105.9mil.

Atlan credited the stronger q-o-q performance in 3Q24 primarily to a stronger turnover reported by its automotive and duty-free segments.

The group also declared a second interim single-tier ordinary dividend of four sen per share for the quarter in review, bringing total dividends for the financial year ending Feb 29, 2024 to 10 sen per share, amounting to a total of RM25.37mil.

Besides the duty-free, automotive and investment holding segments, the group is also heavily involved in property and hospitality, finalising the full acquisition of Belle Isle Hotels (Cornwall) Management Ltd (BIM) on April 3 last year.

Atlan reported that the acquisition had also generated higher revenue since the completion of the acquisition, which was nonetheless offset by reduced turnover from its Malaysian properties due to lower occupancy rate throughout the financial year.

It said, “This has resulted in a slightly higher loss before taxation in the current quarter under review for the hospitality segment as compared to the corresponding quarter in the previous financial year.”

The group’s most noteworthy serviced apartment in the country is the ZON All Suites Residence On The Park, located in Kuala Lumpur.

The fine showing notwithstanding for the period, Atlan said it would continue implementing stringent cost-control measures while concurrently formulating strategies to adeptly navigate the ever-changing business landscape.

“The overarching objective is to safeguard the resilience and strength of the group’s core businesses amidst these challenges,” it added.