KUALA LUMPUR (May 19): Southern Acids (M) Bhd posted a 313% surge in its fourth quarterly net profit ended March 31, 2022 (4QFY22) to RM26.68 million, from
RM6.46 million in the previous year, on higher contributions from oleochemical, milling and estate segments driven by strong commodity prices. 

As a result, earnings per share rose to 19.48 sen, from 4.72 sen previously. 

Quarterly revenue jumped 63.82% to RM364.42 million against RM222.45 million a year earlier, on better performances in its core business segments. 

Southern Acids told the local bourse that its board of directors had recommended a final dividend of 5 sen per share, amounting to a total payout of RM6.85 million. 

“This dividend proposal is subject to the approval by shareholders at the forthcoming Annual General Meeting of the Company. The date of entitlement and date of payment in respect of the aforesaid dividend will be determined and announced in due course,” said the company in its filing. 

According to Southern Acids, the oleochemical segment’s revenue increased 48.8% to RM153 million from RM102.8 million, on higher average selling prices for fatty acids and glycerine. Its milling and estate segment’s revenue grew 90.1% to RM184.5 million, from RM97 million on higher average selling prices for crude palm oil and palm kernel. 

Revenue for the healthcare segment rose 22.2% to RM23.4 million, from RM19.2 million on higher number of registered inpatients and increased bed occupancy rate. 

The company’s annual net profit for the financial year ended March 31 (FY22) shot up to RM94.45 million, up by 152.83% from RM37.36 million a year ago, as FY22 revenue climbed 57.72% to RM1.18 billion, from RM741.1 million. 

Looking ahead, Southern Acids said the ongoing conflict in Ukraine, the severity in supply disruptions and concerns over slowing global growth remain issues at the
forefront that may potentially impact the company’s prospects. 

“Greater emphasis will be placed on sustaining a healthy balance sheet and operating cash flows to weather through the current period of uncertainties,” the group
added. 

On Thursday (May 19), Southern Acids closed unchanged at RM3.88, for a market capitalisation of RM531.3 million.