Financials

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST QUARTER AND THREE MONTHS ENDED 31 MARCH 2025

Financials Archive

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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 1Q2025, the Group achieved RM252.3 million in total revenue, a 1.1% increase as compared to RM249.5 million in 1Q2024. Cost of sales increased to RM170.1 million in 1Q2025, a 11.9% increase from RM152.0 million in 1Q2024. The Group's gross profit dropped by 15.7% from RM97.5 million in 1Q2024 to RM82.2 million in 1Q2025. Group's gross profit margin dropped from 39.1% to 32.6% due to higher cost of sales for the quarter.

The Group's other income reduced by 23.9% to RM5.9 million in 1Q2025. These are mainly due to lower interest rates from lower balance of fixed deposits in 1Q2025 as compared to 1Q2024.

Selling and distribution expenses increased by 1.9% in 1Q2025 respectively mainly due to increasing sales activities.

General and administrative expenses decreased by 8.6% to RM9.7 million in 1Q2025 mainly due to decrease in performance incentives.

In 1Q2025, other operating expenses increased to RM1.4 million mainly due to net foreign exchange loss.

The Group’s effective tax rate was higher at 23.0% in 1Q2025 compared to 21.3% in 1Q2024 due to lower reinvestment allowances recognised in 1Q2025. In 1Q2025, income tax expense decreased by 13.7% to RM16.9 million as a result of lower taxable income.

Overall in 1Q2025, the Group's profit before tax and profit after tax reduced by 20.1% and 21.8% respectively.

Balance Sheet Review

As at 31 March 2025, non-current assets which consist of property, plant and equipment (PPE) and deferred tax assets, decreased to RM773.9 million from RM778.5 million. PPE decreased to RM772.7 million from RM777.6 million mainly due to depreciation charge of RM18.2 million. Deferred tax assets (DTA) has increased to RM1.2 million.

As of 31 March 2025, inventories rose to RM106.2 million from RM98.2 million compared to 31 December 2024, primarily due to increase in production volume. Trade receivables decreased from RM178.2 million to RM160.0 million mainly due to improvement in collections.

Cash and cash equivalents increased to RM759.6 million as at 31 March 2025 from RM715.1 million as at 31 December 2024. For the 1Q2025, the Group generated RM56.0 million of net cash flows from operating activities and net cash flows used in investing activities amounting to RM13.3 million were mainly for the purchase of PPE. The Group has net cash flows used in financing activities in 1Q2025 amounting to RM0.1 million is solely for payment of lease liabilities.

Current liabilities reduced to RM105.9 million as at 31 March 2025 mainly due to lower payables and accruals. Payables and accruals decreased to RM93.1 million as at 31 March 2025 from RM123.4 million as at 31 December 2024.

Non-current liabilities increased to RM69.5 million as at 31 March 2025 from RM68.7 million mainly due to higher deferred tax liabilities.

Commentary On Current Year Prospects

The business is currently navigating a challenging environment of price competition, currency fluctuations, volatile raw material prices, and increased production costs. We are closely monitoring the situation particularly on the potential impact of US tariffs and actively exploring strategies to mitigate risks.