DKSH’s 3Q18 net profit drops 8% to RM9.19m

by TMR

DKSH Holdings (Malaysia) Bhd’s net profit for the third quarter ended Sept 30, 2018 (3Q18) dropped by 8% year-on-year (YoY) to RM9.19 million primarily due to one-off other income recorded a year ago.

Revenue for the quarter increased by 10.95% YoY to RM1.52 billion due to organic growth in existing clients the trading group noted in its exchange filing yesterday.

DKSH noted the rise in revenue over 2Q18 is due to a shift in consumer demand following the transition of the Goods and Services Tax rate from 6% to 0% which was effective from June 1, 2018.

DKSH has an overall neutral outlook on 2018 saying prospects remain positive for the logistics segment, however, prospects for its marketing and distribution segment remain less positive due to short-term volatility relating to the introduction of Sales and Services Tax on Sept 1, 2018.

It added a one-off negative impact from a specific client contract impacted the 3Q18 but is not expected to affect the fourth quarter, while the long-term outlook remains positive.