CI Holdings’ net profit up by 35% in 2Q due to 60% increase in average olein prices

by ASILA JALIL / graphic by MZUKRI MOHAMAD

CI HOLDINGS Bhd is poised to continue its expansion plans to increase revenue for its edible oil operations and enhance shareholder’s value via its partnership with property developers for the tapware and sanitary ware divisions.

For its second quarter ended Dec 31, 2021 (2QFY22) the group recorded a net profit of RM29.5 million, up by 34.5% year-on-year (YoY) from RM21.93 million in 2QFY21.

Revenue for the quarter rose 40.9% to RM958.78 million from RM680.23 million in the same period the previous year mainly due to a 60% increase in average olein prices.

The stronger US dollar against the ringgit by 2% also contributed to the revenue growth, the company’s exchange filing yesterday noted.

“This is against a 10% drop in full container loads exported due to shipments rollover and the shortages of freight lines,” it said.

CI Holdings added that operating and net margins for the quarter were down compared to the previous year’s quarter due to destination markets holding out for prices to fall.

To maintain market presence, some price and margin concessions were given to the group’s regular customers.

Profit after tax improved by 33% for the quarter under review and 28% for the cumulative six months despite of a subsidiary reporting an after-tax loss of RM3.8 million and cumulative six-month after-tax loss of RM12.5 million after the restructuring of its current business model, streamlining of its operations and revamping of its credit terms and policies.

For the cumulative six months, CI Holdings net profit rose 29.5% YoY to RM56.78 million while revenue grew by 44.2% YoY to RM2.02 billion.

CI Holdings share price closed one sen higher at RM2.85 yesterday, bringing its market capitalisation to RM461.7 million.

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