KUALA LUMPUR (Oct 23): Zhulian Corp Bhd (KL:ZHULIAN), which is involved in the multilevel marketing (MLM) business and manufactures jewellery and consumer products, reported a drop in third quarter earnings amid lower operating activities due to weak consumer spending.

The net profit for the quarter ended Aug 31, 2024 (3QFY2024) fell 38.83% to RM3.79 million from RM6.2 million a year earlier, the group's bourse filing showed.

This is Zhulian's lowest quarterly net profit since its listing in 2007, excluding the net loss of RM3.16 million reported for 4QFY2022 in the midst of the Covid-19 pandemic.

Earnings per share fell to 0.82 sen from 1.35 sen in 3QFY2023.

Revenue for the quarter dropped 6.29% to RM32.05 million from RM34.2 million a year earlier.

“The group is of the view that current year prospects remain challenging amidst inflationary pressures that impact consumers’ ability and willingness to spend, especially on premium-priced products,” Zhulian said.

Nonetheless, the group has declared a third interim dividend of two sen per share — down one sen from a year earlier — payable on Dec 11, bringing the total dividend declared year-to-date to seven sen per share.

Net profit for the first nine months of the financial year declined 25.71% to RM16.71 million versus RM22.49 million in the previous corresponding period, as revenue fell 5.95% to RM94.22 million from RM100.18 million.

Moving forward, Zhulian said it will continue to focus on enhancing its business owner-centric programmes to boost demand, manage its resources prudently, and improve its operational efficiency.

Shares of Zhulian closed up one sen or 0.85% at RM1.19 on Wednesday, valuing the group at RM547.4 million.