Kossan proposes final dividend of two sen for FY2023

TheEdge Tue, Apr 16, 2024 07:31pm - 1 month View Original


KUALA LUMPUR (April 16): Kossan Rubber Industries Bhd has proposed a final dividend of two sen per share for the financial year ended Dec 31, 2023 (FY2023).

The final dividend will be paid on July 18, with June 20 as the ex-date and June 21 as the entitlement date, the glove maker said in a bourse filing on Tuesday.

The final dividend, however, is subject to the approval of shareholders in the forthcoming annual general meeting. 

If approved, it would raise the dividend payout for FY2023 to four sen per share, up from 2.5 sen per share for FY2022.

Kossan had in February declared an interim dividend of two sen per share for FY2023, which was paid on April 8.

For FY2023, Kossan’s net profit declined 98.03% year-on-year to RM14.22 million — the lowest since FY2006 — against RM157.1 million for FY2022, dragged by a one-off impairment loss and write-off of plants amounting to RM35.38 million, and that of machinery amounting to RM4.41 million.

The weaker annual earnings were also compounded by lower sales volume as well as average selling prices, and higher natural gas.

Revenue for FY2023 shrank 32.34% to RM1.59 billion, from RM2.34 billion a year earlier.

Kossan also expects its operational landscape to continue to be challenging throughout FY2024, amid a persistent supply-demand imbalance in the market, according to its FY2023 financial statement in February.

“As the market experiences realignments due to industry consolidation and capacity rationalisation, the pressure on average selling prices from international competitors is likely to persist,” it said.

Shares in Kossan settled four sen or 1.94% higher at RM2.10 on Tuesday, valuing the group at RM5.37 billion. The stock has risen 11.7% year-to-date, and gained 54.41% in the past one year.

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