KUALA LUMPUR (Nov 28): Wellcall Holdings Bhd (KL:WELLCAL) declared a special dividend on top of an interim dividend, despite a 56.22% drop in the industrial rubber hose maker’s fourth quarter net profit — mainly due to foreign exchange (forex) losses.

The company plans to distribute a one sen per share special dividend, together with a fourth interim dividend of 1.2 sen, on Dec 20, according to its bourse filings on Thursday.

This will raise its dividend payout for the full year ended Sept 30, 2024 (FY2024) to 8.2 sen per share, the same as FY2023, which translates to a 5.13% yield on its share price of RM1.60 at Thursday’s close.

Net profit for the quarter ended Sept 30 (4QFY2024) more than halved to RM7.82 million from RM17.87 million in 4QFY2023, as revenue dropped 2.79% to RM56.65 million from RM58.27 million on slowing demand in the industrial rubber hose industry. The company booked an unrealised forex loss of RM5.15 million in 4QFY2024 versus a gain of RM376,000 previously.

For the full FY2024, its net profit dropped 15.12% to RM46.91 million from RM55.27 million in FY2023, as revenue slipped 3.57% to RM209.4 million from RM217.16 million.

Wellcall said it remains optimistic of sustaining its market share in FY2025 despite global economic challenges.

“The group will continue to be cautious and responsive to market needs, focus on prudent procurement strategies and inventory management to optimise cost and enhance operational efficiency,” it added.

Shares in Wellcall ended two sen or 1.23% lower at RM1.60 on Thursday, giving the company a market capitalisation of RM778.8 million.