Petaling Jaya: Sorrento 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 earlier, boosted by better cost management and the absence of previously incurred one-time listing expenses.
Revenue for the quarter fell 5% to RM47.24 million compared with RM49.71 million in the same quarter last year, according to filings 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 reported a 39.2% rise in net profit to RM16.7 million from RM12 million a year earlier, while revenue declined 3.7% to RM91.3 million from RM94.8 million.
The group attributed the strong earnings to improved operating efficiency and lower operating expenses following the absence of listing-related costs recorded in the previous financial year.
By segment, 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.
With a 0.5 sen interim dividend paid in September 2025, the total dividend declared so far for the financial year is 1.0 sen per share. Sorrento also formalized a dividend policy targeting a payout of at least 30% of net profit, subject to financial performance and funding requirements.
Managing director Lu Chai Lai said the group would focus on business development initiatives, including expansion into plumbing and fitting products aimed at the replacement market, creating a new income stream beyond traditional sanitary ware.
Continuing efforts to enhance dealer stores and brand visibility, the group is also set to launch a new flagship showroom in Johor to strengthen its presence in the southern region and Singapore.
As of Dec 31, 2025, Sorrento remained in a net cash position with cash and cash equivalents of RM48 million, significantly higher than its total borrowings of RM3.5 million. Net operating cash flow for 1HFY26 was RM24.8 million.
