Harrisons proposes 50 sen dividend for FY2022 after record earnings

KUALA LUMPUR (April 10): Harrisons Holdings (M) Bhd has proposed a final and total dividend of 50 sen per share for the financial year ended Dec 31, 2022 (FY2022), after the group achieved its highest-ever annual revenue and net profit.

The proposed dividend is subject to shareholders' approval, with entitlement and payment dates to be announced later, Harrisons said in a Bursa Malaysia filing on Monday (April 10).

The proposed payout is the highest since FY2011, when it awarded shareholders a total payout of 70 sen per share, comprising a special gross interim dividend of 50 sen and a final dividend of 20 sen.

Harrisons in February announced its record annual net profit of RM67.17 million for FY2022 — up 60.92% from RM41.74 million in FY2021 — thanks to an increase in gross margin to 11.69% from 11.22%, while revenue rose 12.56% to its highest of RM2.17 billion from RM1.93 billion, mainly on higher sales volume and selling prices in its fast moving consumer products division in East Malaysia.

“The improvement in margins are due to adjustments to inventory costing and writeback of ullages provisions,” Harrisons said in its bourse filing then. Lower allowance for impairment of trade receivables compared to FY2021 also helped boost its performance.

Cement sales at its building materials division also increased compared to FY2021, when operations were affected by Covid-19 lockdowns.

Moving forward, Harrisons expects to perform well in tandem with the 4% to 5% forecast growth in gross domestic product for Malaysia's economy.

“The group will continue to build on the strength of our extensive comprehensive network of branches and skilled workforce to expand our business,” the group said.

“Our new ERP (enterprise resource planning) system in Sabah, having successfully gone live, will help to improve operating efficiencies and monitor operation costs. The long-term core business is expected to remain intact and grow,” it said.

Harrisons' share price settled a sen or 0.11% lower at RM9.09 on Monday, bringing a market capitalisation of about RM623 million. The counter has climbed 56.45% in the past six months.