SHAH ALAM, 27 FEBRUARY 2025 – LEON FUAT BERHAD (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products specialising in rolled long and flat steel, today announced its financial performance for the fourth quarter ended 31 December 2024 (“Q4FY2024”).
For Q4FY2024, the Group recorded a revenue of RM246.04 million, remained fairly consistent by merely marking a 2.3% increase from RM240.57 million in Q4FY2023.
Despite the revenue increase, gross profit declined by 37.3% to RM14.59 million, down from RM23.26 million in Q4FY2023, mainly due to a lower gross profit margin of 7.7% compared to 10.7% in the previous corresponding quarter, alongside a higher inventories written down of RM4.32 million.
The Group reported a loss before tax (“LBT”) of RM5.31 million for the quarter, compared to a profit before tax (“PBT”) of RM6.81 million in Q4FY2023. The decline was primarily due to lower gross profit coupled with higher operating costs, which increased by RM3.31 million from Q4FY2023, mainly caused by higher staff-related expenses, increased investment in Enterprise Resource Planning (“ERP”) systems, and a net addition of impairment losses on financial instruments. Furthermore, finance costs rose by RM0.47 million, reflecting higher utilisation of credit facilities.
In comparison with the immediate preceding quarter (“Q3FY2024”), revenue increased by 6.8% from RM230.44 million, driven by higher sales in the processing segment. However, gross profit decreased by 19.0% to RM14.59 million, and the Group recorded a LBT of RM5.31 million, compared to a PBT of RM0.84 million in Q3FY2024. The quarter-on-quarter decline was primarily due to lower gross profit margin, increased inventories written down, and additional costs related to ERP implementation and foreign exchange losses, among others.
Calvin Ooi Shang How, Executive Director of Leon Fuat commented, “FYE2024 has been a year marked by economic uncertainty, cost restructuring, and price fluctuations. However, our ability to sustain revenue growth, particularly in the processing segment, reflects the strength of our business and our commitment to operational efficiency.”
He added, “As we enter FY2025, we remain cautiously optimistic, supported by Malaysia’s projected economic recovery and improving global trade conditions. With continued efforts in cost optimisation, inventory management, and strategic business initiatives, we are positioning ourselves to stabilise and enhance our profitability in the coming year.”
As at 27 February 2025, the share price of Leon Fuat is RM0.435, representing a market capitalisation of RM148.3 million.
