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 results for the first quarter ended 31 March 2025 (“Q1FY2025”), marking a return to profitability despite softer top-line performance amid challenging market conditions.
For Q1FY2025, the Group recorded revenue of RM212.52 million, a 5.7% decrease from RM225.26 million in the corresponding quarter of the previous year (“Q1FY2024”). The decline was primarily due to lower revenue from the trading segment, which saw a 15.9% drop amid reduced tonnage sales and weaker average selling prices, particularly in carbon steel products.
Despite the dip in revenue, gross profit stood at RM19.54 million, down 29.0% year-on-year. This was mainly due to lower overall gross profit margin of 9.2%, compared to 12.2% in Q1FY2024, impacted by weaker pricing conditions. Nevertheless, the Group recorded a profit before tax (“PBT”) of RM1.87 million, as compared to RM10.85 million in Q1FY2024, reflecting the overall impact of market softness and cost dynamics.
In comparison with the immediate preceding quarter, revenue declined by 13.6% from RM246.04 million in Q4FY2024. However, gross profit increased by 34.0% from RM14.59 million to RM19.54 million, and the Group recorded a turnaround to PBT of RM1.87 million, compared to a loss before tax (“LBT”) of RM5.31 million in the preceding quarter. The improved performance was attributed to higher gross profit margin, lower operating costs and the absence of inventory write-downs which had impacted the previous quarter.
Fuat commented, “While the first quarter saw lower revenue on a year-on-year basis, we are encouraged by our return to profitability and the recovery in margins. This reflects the effectiveness of our cost control efforts and strategic inventory management. As we look ahead to the rest of FY2025, we remain cautiously optimistic. Our focus will remain on improving operating efficiency and navigating steel price volatility with prudence. With better inventory positioning and sustained customer demand across our diversified base, we aim to strengthen our performance over the coming quarters.”
As at 28 May 2025, the share price of Leon Fuat is RM0.375, representing a market capitalisation of RM127.9 million.
