KUALA LUMPUR (Aug 25): KUB Malaysia Bhd reported a net profit of RM96.19 million for the quarter ended June 30, 2011, mainly due to gains from the disposal of oil palm estates and an associate company involved in sanitary waste management.

There is no comparison figure due to a change in financial year end from Dec 31 to June 30, the group said in a filing with Bursa Malaysia.

It said revenue for the quarter was RM93.86 million, supported by growth in its agro division.

For the 18-month period ended June 30, 2021, the group recorded a net profit of RM155.54 million on revenue of RM584.04 million. 

KUB Malaysia chairman Datuk Seri Johari Abdul Ghani said notwithstanding the challenging operating and economic backdrop, the group is on a much stronger and stable footing to execute its strategic plans to become a sustainable profitable company.

“The results for the financial period reflect the culmination of our transformational efforts to reduce any future losses through the disposal of our non-core/non-strategic businesses and to direct our focus and commit resources to the core business segments of the group,” he said in a statement.

According to the group, its cash position surged to RM423.1 million as at June 30, 2021, from RM145.6 million as at Dec 31, 2019,  and its gearing ratio has reduced to 8% from 31% during the same period.

Moving forward, KUB foresees economic uncertainty, market turbulence and weak consumer sentiment to remain as issues in the next financial year, due to the rising Covid-19 cases and volatility in global crude oil prices.

“The group will continue to aggressively seek for further sizable contracts whenever the opportunity arises to enhance our order book, and hopes to expand its ICT business following the joint venture arrangement with HFR, Inc in the second quarter of last year.

“Pre-emptive balance sheet and effective cash flow management will also be the group’s priority in the coming quarters, in order to maintain sustainability of its businesses under the present circumstances. 

“As such, we will proactively reassess our capital expenditure plans, tighten up operating expenditure, review investment decisions and re-optimise our capital structure where necessary,” it added. 

Shares in KUB settled five sen or 0.79% higher at 64 sen today, giving the group a market capitalization of RM350.51 million. Year to date, the stock has risen by 7.63%.