KLANG, Feb 13, 2026 — SORENTO, a leading distributor of bathroom and kitchen sanitary ware, has reported a significant surge in profitability for its first half of the 2026 financial year (1HFY26) ended December 31, 2025. Despite a marginal dip in topline performance, the group successfully leveraged improved operational efficiencies to deliver a double-digit increase in earnings.
For the six-month period, Sorento Capital recorded a profit after tax (PAT) of RM16.7 million, representing a 39.2% increase from the RM12.0 million achieved in the previous year's corresponding period. This earnings growth was largely attributed to the absence of one-off listing expenses incurred during its IPO phase and a rigorous approach to cost management. Total revenue for the half-year stood at RM91.3 million, with the dealer network and project-based sales remaining the dominant contributors, accounting for over 99% of total turnover.
Managing Director Mr. Loo Chai Lai expressed optimism about the group's trajectory, noting that the consistent results provide a solid foundation for upcoming expansion plans. "Looking ahead, we will focus on executing our business development initiatives and strengthening the Group’s market presence," he stated. A key pillar of this growth strategy is the group's pivot into the plumbing and fitting replacement market, a segment driven by consistent maintenance and repair needs rather than purely new property developments.
To reward its shareholders, the Board has approved an interim dividend of 0.5 sen per share, payable on March 13, 2026. This brings the total dividend declared for FY26 to 1.0 sen per share to date. Moving forward, the group aims to maintain a dividend payout ratio of at least 30% of its net profit, underscoring its commitment to delivering value to stakeholders while maintaining a healthy liquidity position.
The group’s financial health remains robust, ending the period in a net cash position with cash and cash equivalents of RM48.0 million, which dwarfs its total borrowings of RM3.5 million. This financial strength is further supported by a positive net operating cash flow of RM24.8 million generated in the first half of the year.
Strategically, Sorento Capital is preparing to launch a new flagship showroom in Johor. This facility is expected to act as a bridge to both the southern Malaysian region and the Singaporean market, facilitating closer engagement with property developers, architects, and interior designers. By combining geographic expansion with a broader product portfolio, the group believes it is well-positioned for sustainable growth in the evolving sanitary ware landscape.