DKSH posts 19% profit jump in 1Q

KUALA LUMPUR: DKSH Holdings (M) Bhd, which posted a 19% rise in first-quarter net profit, will continue focusing on talent development, digitalisation, and automation.

“The group’s strategy remains to grow existing businesses and secure new businesses, improve cost and resource efficiency, manage working capital, and consistently monitor the outlook to navigate the prevailing environment,” DKSH said in a filing with Bursa Malaysia.

DKSH noted that the economy is projected to maintain positive momentum in 2025, building on the strong year-on-year growth achieved in 2024.

“While this outlook is encouraging, it is tempered by evolving global trade policies - including recent tariff adjustments and supply chain realignments - which may impact specific sectors. Additionally, potential rationalisation of domestic subsidies could introduce new cost dynamics,” it added.

In the first quarter ended March 31, DKSH’s net profit rose to RM48.2mil, or 30.56 sen per share, from RM40.4mil, or 25.65 sen, a year ago.

The higher profit was mainly driven by sales growth, improved cost efficiencies, and favourable foreign exchange gains.

Revenue for the quarter rose 7.1% to RM2.22bil from RM2.07bil in the first quarter of 2024.

It attributed the improved revenue to stronger sales from new and existing clients in the consumer goods and healthcare segments, along with higher outlet sales in the others segment, compared to both the first and fourth quarters of 2024.