Hai-O Q3 profit at RM12 mil Petaling Jaya: Hai-O Enterprise Bhd has posted a 29% increase in pre-tax profit to RM12.27 mil on the back of RM 109 mil revenue for the third quarter ended Jan 31. Its net profit rose by 52.5% to RM7.57 mil, mainly due to higher revenue and profit margins from its wholesale and multi-level marketing division, the company said in a statement.
Profit growth was also largely driven by retailing healthcare products from China, which contributed 80% of the group's operating revenue and profit. The company expects to maintain a good cash position due to the growth in earning and minimal capital expenditure requirement.
As at Jan 31, its net cash and short-term investment stood at RM 19mil. Earnings per share also rose to 12.23 sen. Hai-O also recently added pu-er tea to its range of branded products, and expects its tea business to contribute over RM 5 mil in profit for the current financial year.
We expect contributions from the tea business to grow next year as well,group financial controller Hew Von Kin told Starbiz. The company plans to set up a tea-trading centre in Kuala Lumpur Sun Complex soon. (The Star, 31 March 2006)