SOUTHERN ACIDS (M) BERHAD 35TH ANNUAL GENERAL

Transcript:SOUTHERN ACIDS (M) BERHAD 35TH ANNUAL GENERAL:
SOUTHERN ACIDS (M) BERHAD 35TH ANNUAL GENERAL MEETING 24 AUGUST 2016 SHAREHOLDERS BRIEFING 1 Shareholders Briefing Information This briefing is mainly the summary of the key highlights of the Chairman’s Statement and Management Discussion And Analysis as stated in the Company’s 2016 Annual Report (“2016 AR”). Information contained in this briefing is solely based on 2016 AR and all other information available from Bursa website. 2 Presentation Contents Southern Acids (M) Berhad (“the Company or SAB”) & Its Subsidiaries (“Southern Acids”) Financial Highlights Review Of Core Businesses Prospects Questions & Answers 3 SOUTHERN ACIDS FY2016 FINANCIAL HIGHLIGHTS 4 SELECTED FINANCIAL HIGHTLIGHTS - FY2016 Vs FY2015 503,414 536,665 6.2% 15.5% 36,916 25,964 43,691 34,106 Profit before tax Revenue FY2015 (RM’000) FY2016 (RM’000) Change 23.9% Earnings per share Profit for the year 18.2 sen 20.1 sen 9.5% Dividend (net) Dividend pay-out ratio 10.4% No change 5 SELECTED FINANCIAL HIGHLIGHTS - FY2016 Vs FY2015 626,372 604,922 FY2016 (RM’000) FY2015 (RM’000) Change 3.5% 3.0% 6.7% 67,854 225,424 65,847 211,364 Net Current Assets Total Liabilities Total Assets 513,942 Equity attributable to Shareholders of the Company 493,392 4.2% 6 Southern Acids Financial Results Highlights:- Revenue was lower by 6.2% in FY2016 compared to FY2015; and PBT was lower by 15.5% in FY2016 compared to FY2015. In summary, Oleochemical and Healthcare Divisions achieved a higher PBT whereas Plantation & Milling reported a lower PBT in FY2016. 7 SOUTHERN ACIDS FY2016 REVIEW OF BUSINESS DIVISIONS 8 Highlights:- The 18.8% lower in revenue was mainly due to 15.8% lower in sales volume. The lower demand from major importing countries has caused stiff competition in international market; and Analysis of the RM7.2m increase in PBT:- Operational profit; the efficient sourcing of raw material has cushioned the impact from lower sales. The division achieved a marginal increase of RM0.9m in PBT; and Non-Operational profit; out of the RM7.2m, RM6.3m was contributed mainly by gain in forex (both realized and unrealized). Review of Oleochemical Division 9 Prospects of Oleochemical Division This division will remain to be challenging in FY2017 and it is expected to face the same uncontrollable factors as follow, amongst others:- Economy situation of major importing countries which will determine the market demand and pricing; Higher operating costs due to the increase in regulated price in Malaysia. For example, natural gas price and minimum wages; Changes in Malaysia foreign labor policy; Volatility in USD/MYR exchange rate; and Volatility in CPO