KUALA LUMPUR, 27 FEBRUARY 2025 – 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 the financial results for the fourth quarter of the financial year ended 31 December 2024 (“Q4 FYE2024”).
For the fourth quarter, the Group reported revenue of RM27.83 million, bringing total revenue for the full year (“FYE2024”) to RM105.51 million. The food processing and packaging machinery solutions segment remained the Group’s primary revenue contributor, generating RM16.85 million in Q4 FY2024, representing 60.55% of total quarterly revenue. The manufacturing and trading of flexible packaging materials segment also recorded a notable increase, contributing RM7.63 million, or 27.41% of total revenue. Meanwhile, the trading of cellulose casings business generated RM3.35 million, accounting for 12.04%.
Some of the orders originally scheduled to be delivered in Q4 FYE2024 was deferred to coming quarters in 2025 on the request of customers, driving the Q4 FYE2024 revenue from the food processing and packaging machinery solutions segment lower to close at RM16.85 million, as compared to RM31.80 million in the preceding quarter (“Q3 FYE2024”). Nevertheless, the decrease was partially offset by a significant increase in the manufacturing and trading of flexible packaging materials segment, which recorded RM7.63 million in Q4 FY2024, marking a 137.69% growth from RM3.21 million in Q3 FYE2024.
For the full financial year, the food processing and packaging machinery solutions segment generated RM76.78 million, representing 72.77% of total FYE2024 revenue, further cementing EPB’s strong foothold in the industry. The manufacturing and trading of flexible packaging materials segment contributed RM15.66 million, or 14.84%, while the trading of cellulose casings segment accounted for RM13.07 million, or 12.39% of total revenue.
The Group’s profitability remained stable despite the lower revenue, with profit before taxation (“PBT”) easing slightly from RM4.18 million in Q3 FYE2024 to RM4.06 million in Q4 FYE2024, a marginal decrease of 2.87%. For FYE2024, EPB’s total PBT stood at RM13.53 million. After adjusting for one-off IPO listing expenses amounting to RM2.78 million, the adjusted PBT for FYE2024 was RM16.31 million. The listing expenses impacted profitability in the earlier quarters, but the Group’s underlying business performance remained strong, demonstrating resilience and steady growth across its core revenue segments.
Mr. Yeoh Chee Min, Managing Director of EPB Group Berhad, commented, “Our Q4 FY2024 results reaffirm our ability to navigate an evolving market landscape while delivering sustained revenue and profitability. Despite ongoing global economic challenges, we have remained steadfast in expanding our production capabilities, fulfilling customer orders, and broadening our automation solutions. With a strong order book and strategic expansion plans in motion, we are confident in driving long-term growth and value creation for our stakeholders.”
EPB continued to advance its growth initiatives in Q4 FY2024. In September 2024, EP Machinery, a wholly-owned subsidiary of EPB, acquired a 7.8424-acre industrial land parcel in Penang Science Park North for RM22.49 million. This acquisition will support the construction of a new factory, corporate office, warehouse, and showroom, aimed at enhancing production capacity and expanding the Group’s robotics capabilities. The land acquisition is expected to be completed by the second half of 2025.
As at 31 January 2025, EPB’s order book stood at RM94.90 million, reflecting a healthy pipeline of projects that are expected to be progressively billed mostly throughout 2025, ensuring revenue sustainability in the coming quarters.
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 business outlook for 2025, leveraging automation, expanded production capabilities, and strong market demand to achieve sustainable growth and profitability.
