The net profit increase was attributed to the relatively lower cost of raw materials consumed compared with FY2021.

In a filing with Bursa Malaysia, the company said revenue eased 2.45% to RM730.88 million against RM749.27 million previously.

It said the protracted disruption in the global supply chain and exorbitant shipping charges in the first half of the year, coupled with the high stock-holding level at customers’ warehouses and reduced demand due to anticipated slow down in the economy, impacted the current year’s export sales volume.

Lii Hen added the impact was more than the effect of the shutdown of the group’s operation due to the Covid-19 pandemic in the preceding year.

The group also said export sales denominated in US dollars declined by 8% in FY2022 compared to the preceding year.

“On the current year’s prospects, although global economic growth is likely to slow down coupled with fears of recession, the recent improvement on inflation data and China’s reopening might pave the way for a softer landing and a rebound in business activity,” it said.

On the local front, Lii Hen said reduced orders from customers continue to exert pressure on the group’s operations.

The group said it would continue to exercise vigilance in decision-making to sustain business viability with the view to enhance long-term shareholder value.

“With a largely controllable cost structure in place, a wider market base for the group’s products and rationalisation on the use of the available workforce, and barring any unforeseen circumstances, the board is of the view that the group will remain profitable for FY2023,” it added.