KUALA LUMPUR (Aug 25): Oriental Holdings Bhd’s net profit fell 8.48% to RM125.2 million for the second quarter ended June 30, 2023 (2QFY2023) from RM136.81 million a year ago due to higher finance costs and lower share of profits after tax of equity accounted associates, despite higher revenue.

Finance costs nearly tripled to RM10.29 million from RM3.55 million previously, while the share of profits after tax of equity accounted associates dropped 48.3% to RM11.11 million, from RM21.48 million.

Earnings per share sank to 20.18 sen in 2QFY2023 from 22.05 sen previously, the group's filing showed on Friday (Aug 26).

Revenue for the quarter, however, increased 7.1% to RM1 billion from RM939.18 million previously.

The group recommended an interim single tier dividend of 20 sen per share. The entitlement and payment date will be determined later.

This brings the total dividend to 40 sen per share so far in FY2023, 33.33% higher than 30 sen paid in the same period of last year.

The weaker quarterly performance also led Oriental Holdings to post a lower net profit of RM219.44 million for the cumulative six months ended June 30, 2023 (6MFY2023). It skid 45.78% from RM404.65 million in 6MFY2022 which saw an exceptional gain of RM212 million on the disposal of a hotel in Melbourne Australia.

The lower earnings were also attributed to lower realised and unrealised foreign exchange gain of RM88.9 million from the strengthening rupiah against the Singapore dollar and yen denominated borrowings from the plantation segment

Revenue for 6MFY2023 came in at RM1.97 billion, 4.85% higher than the RM1.88 billion in the previous Jan-June period, due to higher revenue from automotive, plastic and investment holding segments.

On its prospects, the group said the automotive segment will continue to contribute to its performance under competitive market conditions with strong and aggressive promotional campaigns by the industry players.

The plastic segment continues to face competitive environment from other industry players, although the sector is seeing positive signs of recovery.

For the plantation segment, the group will take necessary steps to ensure that all estates and mills remain efficient, cost-effective and competitive.

Meanwhile, the healthcare segment will continue to focus on strengthening brand awareness and positioning the hospital for sustainable growth.

Oriental Holdings’ share price closed down three sen or 0.47% at RM6.32, giving the group a market capitalisation of RM3.92 billion. Year to date, the stock has fallen 7%.