KUALA LUMPUR: Southern Acids (M) Bhd
posted a 68.4% jump in net profit to RM15.64mil for the second quarter ended Sept 30, 2026 (2QFY27), from RM9.29mil a year earlier, driven by stronger contributions from its milling and cultivation and healthcare services divisions.
Revenue, however, declined 8.4% to RM233.71mil from RM255.06mil, mainly due to lower contributions from its oleochemical manufacturing and milling and cultivation businesses.
In a filing with Bursa Malaysia, the group said its oleochemical manufacturing segment recorded a narrower pre-tax loss of RM2.23mil compared with RM4.80mil previously, supported by higher average selling prices, improved margins and favourable foreign exchange movements.
Segment revenue fell 20.4% to RM64.44mil, mainly due to lower sales volume.
Meanwhile, the milling and cultivation segment recorded an 18.6% increase in pre-tax profit to RM17.93mil, despite revenue declining 5.9% to RM126.38mil.
It said the improvement was due to stronger plantation productivity, better operating margins and contributions from other income.
Its healthcare services segment posted a 15% rise in pre-tax profit to RM10.72mil, while revenue increased 10.2% to RM36.10mil, supported by higher patient volumes and improved gross profit margins.
For the six months ended Sept 30, 2026, Southern Acids' net profit surged to RM30.16mil from RM8.97mil in the corresponding period last year.
Revenue declined 2.4% to RM469.38mil from RM481.11mil, while net profit surged to RM30.16mil from RM8.97mil.
Looking ahead, Southern Acids said its oleochemical manufacturing business would continue to face challenges from subdued global demand, intense competition and uncertainties surrounding international trade policies.
However, the group remained cautiously positive on its milling and cultivation segment, supported by relatively firm crude palm oil and palm kernel prices.
It also expects its healthcare services business to remain resilient, underpinned by sustained demand for private healthcare and continued growth in patient admissions.
“Despite the prevailing global economic and geopolitical uncertainties, the group remains focused on strengthening operational resilience, maintaining financial discipline and managing emerging business risks,” Southern Acids said.
Barring unforeseen circumstances, the board remains cautiously optimistic about the group's prospects for the financial year ending March 31, 2027.
