KUALA LUMPUR (May 24): Asia Brands Bhd swung to profitability in the fourth quarter ended March 31, 2021 (4QFY21) at RM1.71 million, from RM1.01 million in losses a year ago, thanks to a higher revenue and lower operating and finance costs.

The “Anakku” baby clothes brand owner's quarterly earnings per share (EPS) stood at 0.74 sen per share, from 0.43 sen in losses per share, its results filing showed.

Quarterly revenue rose 16.55% to RM44.11 million, from RM37.84 million for 4QFY20, when the first movement control order (MCO) was enforced.

Despite the Covid-19 headwinds, efforts in revenue rationalisation and cost management helped Asia Brands record a 77.94% increase in net profit to RM15.15 million or 6.51 sen per share for the full year ended March 31, 2021 (FY21) from RM8.51 million or 3.66 sen per share for FY20.

This was despite its full-year revenue declining 9.27% to RM170.22 million from RM187.61 million a year ago.

On prospects, the group said that its supply chain partners “remain supportive” and cited its resilient business despite the MCO.

“Moving forward, we remain cautiously optimistic about a recovery in the coming financial year as the market becomes more challenging after the reimposition of the MCO,” it said.

Asia Brands shares had risen one sen or 1.64% to 62 sen at the time of writing today, valuing the group at RM146.57 million.