PETALING JAYA: CI Holdings Bhd reported RM307,000 in losses after tax from its continuing tap and sanitary ware businesses on lower revenue of RM9.08 million for its first quarter ended Sept 30, 2011 (1QFY12) compared with a profit after tax (PAT) of RM333,000 in the corresponding period last year.
Profit before tax (PBT) slumped by 81% year-on-year (y-o-y) to RM192,000. The group attributed the decline in its quarterly revenue and PBT of its divisions to the delayed completion of various developers’ projects resulting from softening demand as the global economic environment continues to weaken.
CI, which disposed of its beverages division through the sale of Permanis Sdn Bhd to Japan’s beer maker Asahi Group Holdings Ltd for RM820 million in cash, has classified the company as “held for sale”. The disposal was completed on Nov 11 as the group received the full proceeds from Asahi.
Revenue from Permanis increased by 7% y-o-y to RM153.18 million from RM142.61 million. However, PBT decreased by 34% y-o-y to RM9.5 million from RM14.3 million, leading to lower PAT of RM7.64 million in the quarter against RM11.3 million last year.
“The decrease in profits was mainly due to the increase in sugar price as a result of the final removal of subsidy by the government and an increase in finance cost due to additional financing of the new assets,” the group stated.
Overall, the group achieved PAT of RM7.34 million from the continuing and discontinued operations compared with RM11.67 million in the preceding year.
On a quarter-on-quarter basis, CI recorded a 90% drop in PBT for its continuing operations, compared with the RM1.83 million in the previous quarter ended June 30. PBT from the discontinued operations fell by a smaller percentage of 9% from RM10.4 million.
CI had on Nov 10 announced that it would undertake a total cash distribution of RM724.2 million or RM5.10 per share to its shareholders through a special dividend payment of RM653.2 million or RM4.60 per share and proposed capital repayment of RM71 million or 50 sen per share. These constitute part of the proceeds from the disposal of Permanis.
CI added that it will continue to explore opportunities to replicate its successes in transforming and maintaining extensive growth of its investee companies through new investments. It will also focus on driving its continuing operations in the tap and sanitary ware divisions.
Net assets per share stood at RM1.39 as at Sept 30 against RM1.33 a year ago.
CI’s share price fell two sen yesterday, off its year-to-date high of RM5.30 on Monday. The stock has risen by more than 44% year to date.
This article appeared in The Edge Financial Daily, November 16, 2011.
Profit before tax (PBT) slumped by 81% year-on-year (y-o-y) to RM192,000. The group attributed the decline in its quarterly revenue and PBT of its divisions to the delayed completion of various developers’ projects resulting from softening demand as the global economic environment continues to weaken.
CI, which disposed of its beverages division through the sale of Permanis Sdn Bhd to Japan’s beer maker Asahi Group Holdings Ltd for RM820 million in cash, has classified the company as “held for sale”. The disposal was completed on Nov 11 as the group received the full proceeds from Asahi.
Revenue from Permanis increased by 7% y-o-y to RM153.18 million from RM142.61 million. However, PBT decreased by 34% y-o-y to RM9.5 million from RM14.3 million, leading to lower PAT of RM7.64 million in the quarter against RM11.3 million last year.
“The decrease in profits was mainly due to the increase in sugar price as a result of the final removal of subsidy by the government and an increase in finance cost due to additional financing of the new assets,” the group stated.
Overall, the group achieved PAT of RM7.34 million from the continuing and discontinued operations compared with RM11.67 million in the preceding year.
On a quarter-on-quarter basis, CI recorded a 90% drop in PBT for its continuing operations, compared with the RM1.83 million in the previous quarter ended June 30. PBT from the discontinued operations fell by a smaller percentage of 9% from RM10.4 million.
CI had on Nov 10 announced that it would undertake a total cash distribution of RM724.2 million or RM5.10 per share to its shareholders through a special dividend payment of RM653.2 million or RM4.60 per share and proposed capital repayment of RM71 million or 50 sen per share. These constitute part of the proceeds from the disposal of Permanis.
CI added that it will continue to explore opportunities to replicate its successes in transforming and maintaining extensive growth of its investee companies through new investments. It will also focus on driving its continuing operations in the tap and sanitary ware divisions.
Net assets per share stood at RM1.39 as at Sept 30 against RM1.33 a year ago.
CI’s share price fell two sen yesterday, off its year-to-date high of RM5.30 on Monday. The stock has risen by more than 44% year to date.
This article appeared in The Edge Financial Daily, November 16, 2011.
