Pecca’s Q3 net profit jumps 64%

KUALA LUMPUR: Pecca Group Bhd, which saw its net profit jump 64% in the third quarter ended March 31 (3Q24), aims to sustain its growth momentum in the upcoming quarters.

The group continues to expand into new markets across four key pillars, namely, original equipment manufacturer (OEM), replacement equipment manufacturer (REM), aviation, new business and electric vehicle-related businesses.

In 3Q24, the automotive upholstery maker reported a net profit of RM14.05mil, up 64% from RM8.6mil posted a year ago.

Meanwhile, revenue rose 1.6% year-on-year to RM59.5mil.

Pecca said the improvements were mainly attributable to the higher sales volume and better production cost efficiency achieved in the automotive segment for the current quarter.

It said OEM leather car seat sub-segment contributed about 88.8% of the total revenue for car seat covers while REM and pre-delivery inspection (PDI) sub-segments contributed about 3.9% and 7.3% respectively.

For the first nine months (9M24), Pecca’s net profit jumped 59.7% to RM40.4mil versus RM25.3mil a year ago, mainly due to higher-margin sales and stronger topline contribution from Malaysia and other Asian markets.

Its revenue rose 12.8% year-on-year (YoY) to RM188.3mil in 9M24, led by the increase in sales from the OEM car seat cover sub-segment, which rose by 20.4% YoY to RM150.3mil in 9M24.

Chief executive officer Foo Ken Nee, in a statement, said Pecca is poised to benefit from increased car seat cover sales as vehicle sales in Malaysia are projected to surpass 700,000 units for the third consecutive year in 2024.

“Within the REM sub-segment, we’re working hard to secure more customers by expanding into new markets such as the United States, Australia, New Zealand, Singapore, and Europe. This year, we intend to make key product launches and ramp up our marketing and brand-building activities.

“We continue to make progress on our second plant at the UMW High Value Manufacturing Park in Serendah, Selangor. After this new plant comes online sometime in 2025, it will double our production capacity, enabling us to meet demand from both existing and new customers, including those from our aviation segment,” Foo said.

Meanwhile, executive director Teoh Zi Yi said Pecca is focused on building a strong customer base in the aviation market, with the help of its two partners, Global Component Asia Sdn Bhd and Aero Cabin Solutions (ACS).