Zhulian expects inflationary pressures to impact consumer spending

PETALING JAYA: Zhulian Corp Bhd expects its current financial year to remain challenging, amid inflationary pressures on consumers’ ability and willingness to spend, especially on premium-priced products.

In a filing with Bursa Malaysia, Zhulian said its net profit for the second quarter ended May 31, 2024 (2Q24) dipped to RM6.57mil from RM9.45mil in the previous corresponding period, while revenue in 2Q24 stood at RM33.28mil compared with RM33.43mil a year earlier. Basic earnings per share stood at 1.43 sen, compared with 2.05 sen previously.

For the six-months period ended May 31, 2024 (2H24), Zhulian’s net profit dipped to RM12.92mil from RM16.30mil in the previous corresponding period, while revenue slipped to RM62.17mil from RM65.98mil previously.

For 2H24, Zhulian said the revenue decrease was attributable to overall weak consumer spending associated with prevailing economic conditions and mounting inflationary pressures.

“Results from operating activities stood at RM10.4mil, a decrease of 22% from RM13.3mil recorded in the preceding year’s corresponding period. Decrease was a direct result of the drop in revenue while managing the necessary operating costs.”

Zhulian also declared a second interim dividend of two sen per ordinary share, to be paid on Sept 11.