Tuesday, 20 May 2025
Klang, 20 May 2025 – Bathroom and kitchen sanitary ware solution provider (厨卫洁 具经销商), Sorento Capital Berhad (“Sorento Capital” or the “Company”), has today announced its third quarter (“3QFY25”) and nine months (“9MFY25”) financial results for the period ended 31 March 2025. There are no comparative figures for the preceding year’s corresponding individual and cumulative quarter as this is the third interim financial report being announced in compliance with the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad.
In 3QFY25, Sorento Capital posted a revenue of RM41.1 million, with a profit before tax (“PBT”) of RM8.1 million and a net profit of RM6.3 million. This translates to a PBT margin of 19.7% and a net profit margin of 15.3%.
For 9MFY25, the Company reported a PBT of RM25.2 million and net profit of RM18.3 million, against revenue of RM135.9 million. On an adjusted basis, after excluding one-off IPO listing expenses of RM3.1 million incurred during the nine-month period, Sorento Capital’s adjusted PBT and net profit would have been RM28.3 million and RM21.5 million respectively. This represents a PBT margin of 20.8% and a net profit margin of 15.7%.
Managing Director of Sorento Capital, Mr. Loo Chai Lai (吕再来) said, “We are pleased to report a sustained and positive performance this quarter, despite the seasonal slowdown during the Chinese New Year festival holiday season. Business activities were temporarily affected by the closure of business by dealers and delayed start in both construction and renovation projects due to the holiday period. Encouragingly, market activity has since picked up, with a growing pipeline of projects reinforcing our confidence in the market's strength.”
“Our growth strategy remains centred on expanding our dealer network, with plans to recruit approximately 200 new dealers over the next three years, building on our existing base of 664 dealers in FY24. As of the first nine months of FY2025, we have already added 96 new dealers. This expansion will further enhance our market reach and ensure nationwide accessibility to our products,” he added.
Industry prospects remain positive, supported by rising disposable incomes and growing lifestyle expectations, which are expected to drive increased spending on bathroom and kitchen renovations.
The positive industry outlook is further supported by the rise in residential and commercial construction activities. Government-led infrastructure initiatives, covering tourism infrastructure, and public housing, are expected to drive demand for bathroom and kitchen sanitary ware solutions. In line with this trend, Sorento Capital is expanding its footprint across key building segments, including residential projects, hotels, office buildings, and both new build and renovation developments. By actively participating in a broader range of project types, the Company aims to diversify its revenue base and tap into emerging market opportunities.
Sorento Capital maintained a healthy net cash position, with cash and cash equivalents of RM56.7 million as at 31 March 2025, exceeding total loans and borrowings of RM4.1 million. This was further supported by a robust net operating cash inflow of RM16.8 million for 9MFY25. With a minimal debt profile, Sorento Capital is well-positioned to capitalise on future growth opportunities while continuing to deliver consistent value to its shareholders.
To recap, Sorento Capital was listed on the ACE Market of Bursa Securities on 28 October 2024 and successfully raised a total of RM57.4 million.