Update DKSH Holdings pays 22.5 sen dividend despite 19% drop in Q2 net profit

by **Cals** Tue 26 Aug 2014, 23:22

Update DKSH Holdings pays 22.5 sen dividend despite 19% drop in Q2 net profit

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Tuesday, 26 August 2014 18:24
KUALA LUMPUR (Aug 26): DKSH Holdings Malaysia Bhd reported net profit of RM14.46 million, or 9.17 sen per share, for the second quarter ended June 30, 2014, down 19% from RM17.84 million a year ago .

The company said the costs incurred in moving into its new healthcare distribution centre had temporarily affected the logistics segment results for the quarter under review.

“The operating result from continuing operations of this segment declined by 10.1% from RM9.8 million in the first six months of 2013 to RM8.8 million in the same period of 2014 based on the increased rental costs for the new healthcare distribution center and temporary costs relating to the move into the new distribution center,” said the company.

Revenue rose to RM1.36 billion for the quarter, driven organically by the group’s existing clients.

Net profit for the six months fell to RM27.96 million from RM 29.54 million a year ago. Cumulative revenue for the six months rose to RM2.65 billion from RM 2.52 billion a year ago.

The company announced a final single-tier dividend of 9.5 sen and a special single-tier dividend of 13 sen per share which totalled 22.5 sen per share.

On prospects, the company expects group performance to continue positively for the rest of 2014 based on its continued focus on growing existing clients, and the group’s focus on new business development.

“With a scalable business model, the group offers a comprehensive portfolio of services along with the entire value chain, customized and tailor-made to client’s specific needs,” the company said.

The company adds that it expects the marketing and distribution segment as well as its logistics segment to contribute to sustainable, profitable growth.