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Yee Lee's 3Q earnings rises 27.94% on higher sales from all divisions

By Neily Syafiqah Eusoff /   | November 24, 2016 : 6:58 PM MYT   

KUALA LUMPUR (Nov 24): Yee Lee Corp Bhd's net profit for the third quarter ended Sept 30, 2016 (3QFY16) rose 27.94% to RM10.92 million or 5.85 sen per share from RM8.53 million or 4.69 sen per share a year ago.

In the filing to Bursa Malaysia today, the group said the increase was mainly attributed to higher sales in the manufacturing, trading and plantation divisions.

Revenue also increased 25.33% to RM247.91 million from RM197.8 million a year earlier.

However, the profit contribution from its associated company Spritzer Bhd was slightly lower by 1.5% at RM2.1 million.

For the cumulative nine-month period (9MFY16), the group's net profit rose 55.08% to RM32.59 million or 17.46 sen per share from RM21.01 million or 11.55 sen per share, while its revenue grew by 36.39% to RM765.34 million from RM561.14 million a year ago.

On current year prospects, the group is now able to compete in an open market without quantity quota restriction and with reasonable profit margin due to the recent removal of palm based cooking oil subsidy scheme, except 1kg poly bag effective Nov 1, it said.

Yee Lee's board views this as an opportunity for the group to increase its market share with its long established cooking oil brands, it added.

Going forward, the trading division had successfully secured the distributorship of the well-known brands "Ribena" and "Lucozade" range of products in September this year.

"With expansion of warehouse and logistics, this division will continue to secure for more profitable product distributorships to further enhance its products portfolio and profitability," said Yee Lee.

Barring any unforeseen and adverse circumstances, the board believes the group will continue to remain profitable for the financial year ending Dec 31, 2016.

Yee Lee shares closed up one sen or 0.44% to RM2.29, with 127,500 shares done, for a market capitalisation of RM429.97 million.