CI Holdings to continue with expansion for revenue growth

by ASILA JALIL / graphic by MZUKRI MOHAMAD

CI HOLDINGS Bhd is looking ahead with expansion plans for revenue growth and to enhance shareholders’ value.

For the current year prospects, the group will continue with its expansion plans for its edible oil operations and smart partnership tie-up with property developers for the tapware and sanitary ware divisions to enhance shareholders’ value, it noted in an exchange filing yesterday.

CI Holdings’ net profit jumped 70.3% year-on-year to RM14.71 million in its first quarter ended Sept 30, 2020 (1QFY21), against RM8.64 million registered in the same period last year.

Its revenue increased 35.8% to RM722.39 million in the current quarter from RM531.84 million last year attributable to higher exports of full container loads (FCLs) totalling an increase of 18% compared to the corresponding quarter last year.

The revenue also increased due to 34% increase registered in average olein prices over the same period.

“Operating margins for the current quarter improved due to favourable selling margins at destination markets because of sharp increases in prices resulting in increased immediate delivery contracts.

“The higher margins and prices were, thus, less susceptible to price negotiations with the customers,” it stated.

On a quarter-to-quarter basis, the group’s revenue slightly decreased by 3% due to an almost 8% drop in FCLs exported and 3% strengthening of the US dollar against the ringgit.

The group said the slight drop in exports and US dollar value was, however, moderated by the 24% price increase in average olein prices.

The groups’ basic earnings per share also increased to 9.08 sen in 1QFY21 compared to 5.33 last year.