DKSH’s profit in 2Q18 down 14%

by TMR

DKSH Holdings (M) Bhd’s net profit for the second quarter ended June 30, 2018 (2Q18) fell 14% year-on-year (YoY) to RM14.05 million due to higher operating cost.
 
In an exchange filing yesterday, DKSH noted the operating costs for the quarter increased by 3.7% YoY to RM1.42 billion, from RM 1.37 billion in 2Q17.
 
The increase was largely in line with the 3.5% YoY revenue growth to RM1.44 billion recorded in the three months.
 
Moving forward, the group’s prospects for the Marketing and Distribution Segment are less positive due to short-term volatility relating to the introduction of Sales and Services Tax (SST) on Sept 1, 2018 and a one-off negative impact from a specific client contract.
 
The long-term outlook remains positive it noted.