KUALA LUMPUR – EPB Group Berhad (“EPB”), and its group of companies (the “Group”), an established one-stop food processing and packaging machinery solutions provider, is pleased to announce its financial results for the third quarter of the financial year ending 31 December 2024 (“Q3 FY2024”).
For Q3 FY2024, the Group recorded a revenue of approximately RM38.48 million, contributing to a total revenue of RM77.69 million for the nine-month period ended 30 September 2024 (“9M FY2024”). Revenue in Q3 FY2024 represents an 82.13% increase compared to RM21.13 million recorded in immediately preceding quarter (“Q2 FY2024”). This significant growth was driven primarily by higher delivery of customer orders in the food processing and packaging machinery solutions segment, as well as increased orders in the flexible packaging materials business.
The Group registered a Profit Before Taxation (“PBT”) of RM4.18 million for Q3 FY2024, marking a 21.22% increase compared to RM3.45 million in Q2 FY2024. Similarly, Profit After Taxation (“PAT”) for Q3 FY2024 stood at RM3.14 million, marking a 22.04% increase from RM2.57 million in Q2 FY2024. The improved profitability is attributable to higher revenue achieved during the quarter.
The Group’s PBT and PAT for the 9M FY2024 stood at RM12.17 million and RM9.71 million respectively before taking into account the one-off expenses of approximately RM2.71 million incurred in relation to the listing exercise.
Mr. Yeoh Chee Min, Managing Director of EPB Group Berhad, commented, “Our Q3 FY2024 results reflect our ability to consistently deliver value to our stakeholders. The strong growth in revenue and profitability demonstrates the effectiveness of our strategic focus on scaling production and meeting customer demand. With a robust order book of RM80.70 million as at 31 October 2024, we are confident in sustaining this momentum and driving long-term growth.”
During the quarter, EP Machinery, a wholly-owned subsidiary of EPB, entered into a sale and purchase agreement with Penang Development Corporation (“PDC”) on 23 September 2024 to acquire a 7.8424-acre industrial land parcel in Penang Science Park North for RM22.49 million. The land will support the construction of a new factory, corporate office, warehouse, and showroom, significantly enhancing the Group’s production capacity, expanding its robotics offerings, and enabling it to meet the growing demand for food processing and packaging machinery. The acquisition is expected to be completed by the second half of 2025.
The food processing machinery industry in Malaysia continues to experience robust growth. According to the Independent Market Research report in EPB’s prospectus dated 27 June 2024, the sector is projected to grow at a compound annual growth rate of 10.4% from 2024 to 2028, reaching an estimated market size of RM2.84 billion in 2028. This growth is driven by increasing automation due to labour shortages, diversification of food products requiring advanced processing solutions, and rising consumer demand for processed food.
Looking forward, EPB remains optimistic about its prospects for the remainder of FY2024. The completion of ongoing projects and the fulfilment of its strong order book are expected to contribute positively to the Group’s overall performance for the year.
