KUALA LUMPUR (Jan 14): Atlan Holdings Bhd is paying an interim dividend of eight sen per share after its third quarter net profit jumped over four-fold, lifted by proceeds from the compulsory disposal of a subsidiary's land in Kedah to the Malaysian government.

The company's net profit surged to RM29.93 million in the third quarter ended Nov 30, 2024 (3QFY2025) from RM6.47 million in 3QFY2024, though revenue dipped 4.02% to RM112.48 million compared to RM117.19 million, its bourse filing showed.

The significant net profit jump was largely due to a unit of Atlan's 75.53% Singapore-listed subsidiary, Duty Free International Ltd (DFIL), which sold two plots of land in Bukit Kayu Hitam, Kedah to the Home Ministry for RM69.6 million. Expenses related to the disposal were RM25.34 million.

The decline in quarterly revenue, meanwhile, was attributed to lower contributions from the group's automotive, property and hospitality segments.

The interim dividend declared, which is double the four sen it declared in 3QFY2024, will be paid on Feb 17. Year to date, Atlan has paid 12.75 sen dividend, as opposed to 10 sen previously.

For the first nine months ended Nov 30, 2024 (9MFY2025), Atlan's net profit doubled to RM39.06 million from RM15.28 million in 9MFY2024, while revenue grew 7.51% to RM349.32 million from RM324.9 million.

Atlan expects the business environment to remain challenging for the remaining quarter of the financial year due to increasing product and operational costs, compounded by inflationary pressures and cautious consumer spending.

The permanent closure of its duty-free business in Bukit Kayu Hitam in November 2024 due to the compulsory land acquisition is also expected to have an adverse impact on the group's revenue and profitability moving forward, it said.

Atlan shares dipped one sen or 0.4% to close at RM2.50, valuing the company at RM634.13 million.