KUALA LUMPUR (Feb 27): Ajinomoto (Malaysia) Bhd gapped down on Monday (Feb 27), with its shares opening 5.26% lower at RM14.40 from their close at RM15.20 last Friday, after third-quarter net profit plummeted by almost 78%.
The stock fell to an intraday low of RM13.90 shortly after opening, down RM1.30 or 8.6%, before paring some losses and staying range bound for the remainder of Monday, data from Bursa Malaysia showed.
Ajinomoto closed RM1.06 or 6.97% lower at RM14.14, with 257,000 shares traded, valuing the food company at RM859.69 million.
It is the third largest loser on Monday, after Hextar Technologies Solutions Bhd and Dutch Lady Milk Industries Bhd.
The stock declined after the group announced that its net profit for the third quarter ended Dec 31, 2022 (3QFY2023) fell 77.58% to RM2.30 million or 3.79 sen per share, from RM10.26 million or 16.87 sen per share a year ago.
Earnings were lower due to higher material costs, staff costs, transitional costs and sales promotion expenses, as well as a RM1.2 million expense for the financing cost arising from its Islamic financing facility.
Revenue, meanwhile, improved 8.93% to RM146.17 million, against RM134.18 million previously, from higher contributions from the consumer segment.