KUALA LUMPUR: CI Holdings Bhd’s net profit rose to RM650 million for 2QFY12 ended Dec 31, 2011 from RM11.17 million a year ago, thanks to the sale of its beverage subsidiary, Permanis Sdn Bhd, last year.
The group sold its beverage arm to Japanese beverage maker, Asahi Group Holdings Ltd, for RM820 million cash. The divestment provided the group with net cash of RM750.12 million.
Revenue dipped slightly by 5.1% year-on-year (y-o-y) to RM11.34 million, compared with RM11.95 million in the previous corresponding period (excluding Permanis’ contribution).
Revenue for 2QFY12 came from the group’s tap and sanitary ware division and its investment holding business. The group attributed the lower revenue for 2QFY12 to the slowdown in the construction sector.
The tap and sanitary ware division posted RM8.79 million in revenue, 25.99% lower y-o-y than the RM11.88 million from the division a year ago.
Its investment holdings division fared better. Revenue jumped to RM2.56 million from RM77,000 a year ago.
From the lucrative divestment of its beverage business, CI Holdings made a capital payment of RM71 million to its shareholders on the basis of 50 sen per share and declared a special dividend of RM4.60 per share.
As at Dec 31, CI Holdings’ cash balance was RM159 million. After the divestment of its beverage business, chairman Datuk Johari Abdul Ghani, who controls a 30.53% stake, said the company was looking for a core business.
Last month, poultry firm DBE Gurney Resources Bhd announced to Bursa Malaysia that it was in the preliminary stages of discussions with a shareholder of CI Holdings on the placement of new shares to raise fresh working capital.
CI Holdings closed at RM1.25 yesterday, up by two sen after staying at RM1.23 for three days. The volume traded yesterday was 953,800 shares which was 134.18% higher than Wednesday’s 407,300.