SINGAPORE (Mar 12): Malaysia-based furniture maker LY Corp today posted a full year profit of RM51.2 million ($17.3 million) for FY17, up 17.8% from RM43.5 million in FY16 on higher sales.

Revenue for the full year grew 22% to RM350.6 million from RM287.4 million a year ago due to an increase in the number of containers loaded with furniture products due to higher demand from the group’s customers in the US, as well as the higher average selling price (ASP) per container of RM53,000 compared to RM51,000 in FY16 due to higher selling prices of certain furniture models.

However, due to higher purchase prices of most raw materials, the group saw its overall gross profit margin fall to 25% over the year from 26.1% in FY16.

Other income grew 21.9% to RM6.2 million from RM5.1 million a year ago due to higher sale of materials as the company sold more boards to LP Global Resources to manufacture front drawers for most of its models, including lamination services.

A cash dividend of 0.78 cent has been declared for the period under review.  

Looking ahead, LY Corp says it expects the impact of unfavourable exchange rates, if any, to be of short term given its ability to adjust its products’ selling prices – and adds that it will continue to review its hedging policy from time to time.

While noting the continued rise of raw material prices since the group’s IPO, LY Corp says it is cautiously optimistic that the situation will improve over the next few months, and that it will continue to strategise its position with various negotiation techniques.

See: Flashback: LY Corp to be listed on Catalist; promises special dividend, China expansion

Shares in LY Corp closed 1.6% lower at 31 cents on Monday.