SNS Network Technology Berhad announced a strong 405% year-on-year jump in net profit for the third quarter ended 31 October 2024 on improved margins and gains in online store as well as physical store channels sales amid higher customer demand for its ICT products.

Net profit came in at RM10.2 million or 0.63 sen per share, up four-fold from RM2.02 million or 0.13 sen per share in the same quarter last year, with gross margins improving to 11.3%, from 7.4%, lifted by better commercial channel sales margins.

The better margins more than offset the 5.16% decline in quarterly revenue to RM249.71 million, from RM263.29 million in 3QFY2024, due to the absence of a major order from the education industry booked last year. However, SNS Networks' efforts to grow its physical and online sales channels bore fruit, as sales from these segments helped to partially offset the aforementioned impact.

On a quarter-on-quarter basis, SNS Network's net profit grew 60.69% from the RM6.35 million or 0.39 sen per share recorded in 2QFY2025, thanks to the better commercial segment margins recorded. Quarter-on-quarter revenue declined 17.8% from RM303.71 million primarily due to decrease in revenue from the commercial channel.

The improved bottom line in the quarter helped push SNS Network's net profit in nine months ended 31 October 2024 ("9MFY2025") to RM20.28 million or 1.26 sen per share, up 7.16% from RM18.93 million or 1.17 sen per share in the same period last year. This was despite 9MFY2025 revenue retreating 13.4% to RM767.0 million, from RM886.0 million, due to the reasons stated earlier.

On 29 November 2024, the Board of Directors approved a third interim single-tier dividend of 0.25 sen per ordinary share amounting to RM4.05 million in respect of the financial year ending 31 January 2025, payable on 30 December 2024.

The group has committed RM16.77 million for AI GPU servers as at end-October, with options to scale up as industry demand grows, Mr Ko said.