Financials
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS AND FULL YEAR ENDED 31 DECEMBER 2024
Financials Archive
Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
Condensed interim consolidated statement of profit or loss and other comprehensive income
Condensed interim statements of financial position
Review Of Performance
Income Statement Review
For 4Q2024, the Group achieved RM278.0 million in total revenue, a 21.0% increase as compared to RM229.8 million in 4Q2023. As for FY2024, the Group revenue increased by 17.3% to RM1.1 billion. Cost of sales increased to RM188.3 million in 4Q2024, a 35.6% increase from RM138.9 million in 4Q2023. The Group's gross profit slightly dropped by 1.3% from RM91.0 million in 4Q2023 to RM89.8 million in 4Q2024. Group's gross profit margin dropped from 39.6% to 32.3% due to higher cost of sales for the quarter. Overall in FY2024, the gross profit increased by 32.0% to RM390.1 million as a result of improving average selling price and volume as compared to FY2023.
The Group's other income reduced by 16.4% to RM6.5 million in 4Q2024 and 8.8% to RM28.4 million in FY2024. These are mainly due to interest income from lower balance of fixed deposits.
Selling and distribution expenses increased by 0.7% and 8.0% in 4Q2024 and FY2024 respectively mainly due to increasing sales activities.
General and administrative expenses increased by 5.7% to RM8.2 million and 19.9% to RM37.5 million respectively in 4Q2024 and FY2024 mainly due to increase in staff costs.
Other operating expenses of RM1.8 million which included foreign exchange losses have turned into an income of RM1.1 million in 4Q2024 due to net foreign exchange gain.
The Group’s effective tax rate was lower at 20.0% in FY2024 compared to 21.1% in FY2023 due to higher reinvestment allowances recognised in FY2024. In 4Q2024, income tax expense decreased to RM14.5 million as a result of higher reinvestment allowances.
Overall in 4Q2024, the Group's profit before tax was flat and profit after tax increased by 3.7% to RM70.0 million. For FY2024, the Group achieved profit before tax of RM358.7 million and profit after tax of RM286.9 million.
Balance Sheet Review
As at 31 December 2024, non-current assets which consist of property, plant and equipment (PPE) and deferred tax assets, increased to RM778.4 million from RM727.1 million. PPE increased to RM777.6 million from RM726.0 million mainly on additions amounting to RM79.8 million coupled with foreign exchange adjustment offset by the depreciation charge of RM64.9 million and PPE written off or disposed. Deferred tax assets (DTA) has decreased to RM0.9 million.
As of 31 December 2024, inventories rose to RM98.2 million from RM83.2 million compared to 31 December 2023, primarily due to increase in production volume. Similarly, trade receivables increased from RM128.0 million to RM178.2 million mainly due to normalisation of credit terms.
Cash and cash equivalents reduced to RM715.1 million as at 31 December 2024 from RM875.4 million as at 31 December 2023. For the 4Q2024, the Group generated RM67.0 million of net cash flows from operating activities and net cash flows used in investing activities amounting to RM30.0 million were mainly for the purchase of PPE. The Group has net cash flows used in financing activities in 4Q2024 amounting to RM118.7 million mainly for dividend payout.
Current liabilities increased to RM133.7 million as at 31 December 2024 mainly due to higher payables and accruals. Payables and accruals increased to RM123.4 million as at 31 December 2024 from RM71.5 million as at 31 December 2023.
Non-current liabilities increased to RM68.6 million as at 31 December 2024 from RM59.0 million mainly due to higher deferred tax liabilities.
Commentary On Current Year Prospects
In the current year, the supply of gloves has normalised. However, the business is facing challenges of price competition, currency fluctuations, volatile raw material prices, and increased production costs.