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Hai-O 2Q net profit up 35%, declares 6 sen dividend
Dec 18, 2017
Source: The Edge
 

KUALA LUMPUR (Dec 18): Hai-O Enterprise Bhd posted a 34.76% increase in second quarter net profit to RM21.44 million or 7.4 sen per share, from RM15.91 million or 5.48 sen per share a year earlier, on higher revenue in its wholesale and multi-level marketing (MLM) divisions.

Revenue for the quarter ended Oct 31, 2017 (2QFY17) grew 23.8% to RM123.53 million, from RM99.78 million previously, the group said in a filing with Bursa Malaysia.

Hai-O declared an interim dividend of six sen per share, to be paid at a date to be decided later.

The group said the higher earnings at its MLM division was due to higher sales volume of consumer products.

It said higher recurring sales of consumer products, comprising food and beverage, personal care products, skincare series and household products, contributed more than 70% to its total sales.

Meanwhile, the increase in revenue in the wholesale division was mainly due to higher sales generated from Chinese medicated tonic.

For the cumulative six-month period, Hai-O’s net profit surged 53.22% to RM39.3 million or 13.58 sen per share, from RM25.65 million or 8.84 sen per share a year earlier.

Cumulative revenue rose 39.02% to RM248.07 million in 6MFY17, from RM178.44 million.

Going forward, Hai-O said it will remain cautious and will take proactive measures to achieve sustainable performance in the ever-changing operating environment.

“The MLM division will continue to develop more new products in the second half of the year, especially on lifestyle-related range of products and beverage products in the next quarter,” Hai-O said, adding that new members’ recruitment and retention programmes remain one of the ongoing activities that the division will pursue.

Hai-O said the group will also continue to leverage on a digital marketing platform for its main operating segments and is positive on this move. It said it will benefit the group in the long run.

Shares in Hai-O closed up six sen or 1.11% at RM5.47 today, for a market capitalisation of RM1.59 billion. Over the past 12-months, its share price has more than doubled from RM2.41.