KUALA LUMPUR – SKP Resources saw first-quarter revenues decline 22.3% to RM431.6 million ($93 million) from RM555.2 million ($119.7 million) in the same quarter of 2022.

The company's net profit dropped 41.9% to RM21.6 million ($4.7 million) from RM37.2 million ($8 million) a year ago, due to lower profit margin coupled with rising production costs. The company said it incurred significant overhead costs for the quarter, primarily due to manpower cost as a result of lower utilization rate of manufacturing capacity, which correlates with softer order book.

With the challenging macroeconomic outlook, SKP Resources says it will remain vigilant with future order book received from customers and will continue its concerted efforts focused primarily on workforce and supply chain management as well as other cost optimization measures. The company said it is also mindful of significant credit concentration risk that may arise from major customers and will continue to diversify its customer base.

SKP has successfully obtained a certificate of completion and compliance for the its new factory building, which was constructed on a plot of land in Johor measuring approximately 6.4 acres.

"We will continue to expand our printed circuit board assembly, injection moulding and engineering capabilities to take advantage of a widened product assortment," it added.