PETALING JAYA: Rhone Ma Holdings Bhd is expected to post softer earnings in the coming second quarter (2Q23) due to normalisation of the provision for trade receivables and impact of increased cost pressures, says Affin Hwang Investment Bank Research.
The research house stated that despite having a positive outlook on Rhone Ma’s long-term business outlook, it expects inflationary pressure to weigh on its 2023 to 2024 estimated profit margins and cap its profit growth trajectory.
In 1Q23, Rhone Ma reported a 5% year-on-year (y-o-y) rise in revenue to RM48.5mil, driven by contributions from its animal health and food ingredient businesses that more than offset reduced income from the dairy and other businesses.
Earnings before interest, taxes, depreciation and amortisation, however, decreased 7.1% y-o-y to RM5.7mil due to the decline in gross profit brought on by higher material costs.
...