KUALA LUMPUR (Feb 26): DKSH (M) Bhd’s fourth quarter net profit rose 17% to RM15.6 million from RM13.37 million a year earlier, on the back of higher revenue, particularly by its marketing and distribution segment.

Earnings per share for the quarter ended Dec 31, 2017 rose to 9.9 sen from 8.48 sen previously, the fast-moving consumer goods group said in a stock exchange filing.

Revenue rose 3.81% to RM1.38 billion from RM1.33 billion, mainly through gains under its marketing and distribution segment — which DKSH attributed to “organic growth in existing clients” together with season sales increases due to Christmas and Chinese New Year festive seasons.

For the full-year (FY17), DKSH posted a 3% rise in net profit to RM51.99 million, from RM50.47 million in FY16, thanks to “organic revenue growth and a relatively stable cost base” offset by lower contributions from its logistics and non-core operations.

“The year saw some cost increases for additional warehousing but costs have been contained to match revenue growth, resulting in increased profitability,” said the group.

Full-year revenue also rose 4.54% to RM5.51 billion from RM5.27 billion achieved in FY16. “This revenue growth results primarily from underlying organic growth in existing clients, assisted by strategic new business development,” DKSH said.

DKSH is expecting costs to remain stable, with no significant increase expected in 2018. “Market conditions have remained variable and are expected to continue this way into early 2018,” it said.

Meanwhile, DKSH expects two market trends to continue to support the group’s medium- to long-term outlook. “Firstly, the growing middle class in Malaysia supports the demand for consumer goods and healthcare products.

“Secondly, manufacturers increasingly focus on core competencies and seek specialised service providers in order to grow the market for and with them,” it said.

Shares of DKSH slipped 10 sen or 2.5% to close at RM3.90, giving the group a market capitalisation of RM614.87 million.