Rhone Ma shares up despite possible profit shortfall next year

PETALING JAYA: Rhone Ma Holdings Bhd share price’s rose 7.1% this morning despite having warned of a potential shortfall in its revenue and profit next year.
As at 11.25am, Rhone Ma's share price stood at 83 sen with 664,200 shares changing hands.
Rhone Ma warned that a major supplier Merial amended an initial distribution agreement signed between its unit and Merial to exclude swine, poultry, ruminant and veterinary public health products.
Rhone Ma said the excluded products contributed about 31.54% and 47.7% of the total revenue and profit before taxation (excluding the one-off charge of listing expenses which amounted to RM4.14 million) of the group for the financial year ended Dec 31, 2016.
Rhone Ma Malaysia Sdn Bhd (RMM) is the distributor of Merial products comprising products for swine, poultry, ruminant and companion animals as well as veterinary public health products. The amended distribution agreement will see RMM only distributing Merial companion animal products.