KUALA LUMPUR (Nov 15): C.I. HOLDINGS BHD []’s net profit fell 33% to RM7.34 million in the first quarter ended Sept 30, 2011 from RM10.97 million a year ago.
It said on Tuesday the group's revenue and profit before tax of RM9.08 million and only RM192,000 respectively compared to revenue of RM10.98 million and profit before tax of RM1.02 million a year ago. Earnings per share were 5.17 sen compared with 8.22 sen.
“The decrease in revenue and profit before tax were mainly due to the delayed completion of various developer's projects. Project completion delays can be attributed to factors such as softening demand due to uncertainty in global economic conditions and Bank Negara's revision of property loan regulations to curb speculation. High and increasing factor input cost also caused developers and distributors to exercise caution,” it said.
The net profit for the quarter was boosted by a profit of RM7.63 million from discontinued operations.
To recap, on July 21, CIH had entered into a conditional share sale agreement with Asahi for the disposal of the entire equity interest in Permanis Group to Asahi for RM820.0 million.
CIH said for the current quarter under review, the disposal group recorded revenue of RM153.18 million as compared to RM142.61 million in the corresponding quarter last year.
“The increase was mainly due to the successful execution of the Hari Raya promotional campaigns,” it said.
CIH said the disposal group recorded a profit before tax of RM9.51 million as compared to RM14.34 million in the corresponding quarter last year.
"The decrease in profits was mainly due to the increase in sugar price as a result of the final removal of sugar subsidy by the government and an increase in finance cost due to additional financing of the new assets,” it said.
