Datuk Seri Johari Ghani Credits CIHB's Remarkable Q4 Profits To Effective Cost Management
The company's net profit almost tripled from last year.
By Marion Fernando — 02 Sep 2021, 12:43 PM
Spearheaded by chairman Datuk Seri Johari Ghani, C.I. Holdings Bhd (CIHB) is a company that primarily manufactures and packs all types of edible oil
From vegetable cooking oil and vegetable ghee, to speciality fats, margarine, and more, the company's subsidiary within the industry, Palmtop, packs, manufactures, and distributes edible oils to more than 85 countries.
It currently exports to major markets like Africa, the Middle East, and Australia.
Despite global shortages of Full Container Load (FCL) containers due to the pandemic, CIHB reported an impressive 177% increase in Q4 profit, partly thanks to "effective cost management," says its chairman
For the fourth quarter, CIHB brought in RM38.88 million in net profit, which is 219% more than the RM12.18 million the company reported in Q4 of 2020.
Meanwhile, group revenue increased by 22%, from RM2.57 billion in the previous year to RM3.14 billion. Earnings per share also rose to 43.19 sen from 18.59 sen in the previous financial year.
Contributing RM859.19 million to revenue and RM42.87 million to segment profits in the quarter, the edible oil and fats industry was the main contributor to CIHB. This was followed by its tapware and sanitary subsidiaries, which contributed revenues of RM4.96 million.
For the entire financial year, CIHB's net profit soared to RM69.97 million from RM30.11 million in last year
Besides the ringgit strengthening 4% against the US dollar, as The Edge reported, CIHB also attributed the positive trajectory to 100% growth in average olein prices, moderated by a 25% decrease in FCL exported, as per The Malaysian Reserve.
In a recent statement, Datuk Seri Johari said, "The positive performance of the company is due to better margins on all of our products as a result of effective cost management and successfully overcoming shortages of FCL containers which was a problem faced by the world during the pandemic."
He added, "The effective management of the logistical issues faced during this period is vital as CIHB exports more than 95% of its products to its customers in 100 countries."
On top of CIHB, Datuk Seri Johari also serves as chairman and largest shareholder for KUB Malaysia Berhad, both of which he accepted excellence awards for, just last year
