The company, which manufactures leather upholstery, returned a net profit of RM8.35 million for the three months to Sept 30, 2022, the first quarter of its current financial year (Q1 2023).

This was a 16-time increase compared with the RM503,000 returned in the corresponding quarter in the year before.

The revenue rose by 140.7% year-on-year (y-o-y) to RM54.86 million in the same quarter.

Pecca, which enjoyed a double-digit profit margin of 15.2% in the quarter, expects the growth momentum to continue.

In a statement to the media today, Pecca said that with its major automotive clients including Perodua, Proton, Nissan, Toyota, Peugeot and Volkswagen seeing robust car sale orders, it expects to remain a key beneficiary of the strong demand.

Pecca said the automotive segment was the main contributor to the higher sales recorded this year. Sales activities were cut short in the same quarter last year by the implementation of the third movement control order to stem the spread of Covid-19.

It said the revenue from the OEM upholstery segment grew to RM37.3 million in Q1 2023 from RM9.35 million from the previous corresponding period.

This accounted for about 84% of the total revenue for car seat covers.

Pecca said its also recorded a major growth in its share of the Malaysian market after its sales more than doubled to RM52.45 million, accounting for almost 96% of the group’s overall revenue.

CEO Foo Ken Nee said Pecca would continue to build on its four pillars to ensure sustainable business growth.

The four pillars are its OEM business, replacement and maintenance segment, aviation segment and exploration of new business activities.

On Oct 31, Pecca announced that it was making its first foray into Indonesia by acquiring an 80% stake in PT Gemilang Maju Kencana, an upholstery leather wrapping and car seat cover manufacturer.

Pecca said the acquisition would boost its future sales and diversify its operational markets.