PETALING JAYA: Sorento Capital Bhd’s net profit for the second quarter ended Dec 31, 2025 (2QFY26) rose 23.7% to RM8.67 million from RM7.01 million a year ago, lifted by improved cost management and the absence of one-off listing expenses incurred previously.
Revenue for the quarter slipped 5% to RM47.24 million compared with RM49.71 million in the corresponding quarter last year, according to its filing with Bursa Malaysia.
Profit before tax increased to RM11.58 million from RM9.77 million previously.For the six-month period ended Dec 31, 2025 (1HFY26), the bathroom and kitchen sanitary ware distributor posted a 39.2% jump in net profit to RM16.7 million from RM12 million a year ago, despite revenue easing 3.7% to RM91.3 million from RM94.8 million.
The group attributed the stronger earnings to improved operating efficiency and lower operating expenses following the absence of listing-related costs recorded in the prior financial year.
On a segment basis, sales to dealers and project-based customers remained the main revenue contributors in 1HFY26, accounting for RM59.8 million and RM30.9 million respectively, while the balance came from online sales.The board declared a second interim dividend of 0.5 sen per share for FY2026, payable on March 13.
Together with the 0.5 sen interim dividend paid in September 2025, total dividends declared for the financial year so far stand at 1.0 sen per share.Sorento also formalised a dividend policy targeting a payout of at least 30% of net profit, subject to financial performance and funding requirements.
Managing director Loo Chai Lai said the group will focus on business development initiatives, including expanding into plumbing and fitting products aimed at the replacement market, creating a new income stream beyond traditional sanitary ware.
The group is also set to launch a new flagship showroom in Johor to strengthen its presence in the southern region and Singapore, while continuing efforts to enhance dealer stores and brand visibility.
As at Dec 31, 2025, Sorento remained in a net cash position with cash and cash equivalents of RM48 million, significantly exceeding total borrowings of RM3.5 million. Net operating cash flow for 1HFY26 stood at RM24.8 million.
The Sun Malaysia
