KUALA LUMPUR: Athletics apparel manufacturer PCCS Group Bhd posted a net profits of RM15.31 million for its first quarter (Q1) ended June 30, 2022 (FY22), which was 14 times higher than the RM1.1 million it recorded a year ago.

The company's net profit was partially contributed by the gain on disposal of subsidiaries, Mega Label (Malaysia) Sdn Bhd (MLM) and Mega Label (Penang) Sdn Bhd (MLP) amounting to RM8.3 million.

Minusing these exceptional items, PCCS still recorded impressive net profits of RM7 million.

Furthermore, PCCS' hit record-high revenues of RM169.3 million, showcasing that its core business is strongly growing.

The company is set to fulfil some RM400 million of apparel orders for its financial year ending March 31, 2023 (FY23).

PCCS also announced a special dividend of six sen for its financial year ended March 31, 2023 (FY23) as a way to reward shareholders following the disposal of its labelling business.

For its first quarter to June 30, 2022, revenue saw a 70.15 per cent jump to RM169.3 million from RM99.5 million in the same period a year ago.

This was mainly due to its Cambodian apparel orders strongly coming back following the reopening of businesses.

In the meantime, PCCS has also set out a dividend policy where it will pay 30 per cent of its net profit in respect of the financial year, moving forward.

To recap, in December 2021, PCCS announced the selling off of its loss making packaging business for RM8.5 million, which also saw RM38 million coming into the company.

PCCS, which has 90 per cent of its business in athletic apparel, also has divisions in hire purchase financing and medical devices.

Its biggest export markets for its athletic apparel are China and Hong Kong.

"The worst is now behind us. We are conservatively upbeat on our prospects moving ahead with Covid restrictions being lifted around the world.

"As marathons, soccer matches and triathlons around the world further reopens, our athletic apparel segment will gain momentum," said PCCS managing director David Chan Wee Kiang.

"Moving forward, our profitability will continue to be anchored by our apparel segment. Our focus is to move up the value chain and focus on developing high-tech athlete wear, which also commands better margins," said Chan.

Beginning 2022, PCCS officially designs, develops and manufactures for Puma in China.

PCCS officially kits out the Decathlon racing team that competes for the Tour de France, as well as China's national ping pong and badminton players under Li Ning.

PCCS' biggest customers are Decathlon, Puma and Li Ning.

Further, PCCS continues to be in a strong financial position and remains in a net cash position as usual.

It has net cash of RM42.37 million and short-term funds of RM26.87 million.

Borrowings stood at RM38.34 million, strongly supported by inventories of RM56.61 million and receivables of RM83.29 million.