Magma Group Berhad (“Magma” or the “Company”), a Malaysian conglomerate and investment holding entity rooted in hospitality, with a growing presence in property development and related sectors, today announced its unaudited financial results for the first quarter ended 31 March 2025 (“Q1 FY2025”), alongside updates on its recent corporate developments that signify a broader strategic pivot into the food and beverage (“F&B”) sector.
On a year-on-year basis, Magma maintained a stable revenue of RM6.336 million compared to RM6.922 million in the corresponding quarter last year (“Q1 FY2024”). Revenue remained primarily driven by the Hotel Operation and Hotel Management segments. Loss before tax (“LBT”) widened to RM6.758 million from RM4.085 million in Q1 FY2024, primarily due to elevated corporate-related and capital restructuring expenses incurred in the current quarter. These costs, while strategic and mostly non-recurring, are part of the Group’s broader transition efforts to position for future profitability.
Compared to the preceding quarter ended 31 December 2024 (“Q4 FY2024”), Magma reported a notable improvement in financial performance. Revenue rebounded to RM6.336 million in Q1 FY2025 from a negative RM4.381 million in Q4 FY2024, which was previously impacted by reversal of revenue recognition arising from accounting adjustments. LBT also narrowed significantly to RM6.758 million from RM35.680 million in the previous quarter. This improvement reflects the absence of substantial one-off impairments and fair value losses that had weighed on Q4 performance, signalling a more stable operational footing moving forward.
In parallel with its financial performance, Magma successfully completed a key strategic initiative during the quarter; the acquisition of a 2.26-acre parcel of land in Mont Kiara valued at RM80 million and balance sheet restructuring. Approved at the Company’s Extraordinary General Meeting (“EGM”) held on 21 March 2025, the land is slated for future commercial development and positions Magma for long-term growth in the urban property segment.
Further advancing its diversification into lifestyle ventures, the Group also entered into a joint venture with CHAGEE (M) Sdn. Bhd., an internationally recognised premium tea brand. The newly formed joint venture company, Chagee Magma Sdn Bhd, will spearhead the expansion of CHAGEE’s retail presence nationwide while introducing curated tea experiences that align with evolving consumer trends.
Dato’ Sri Thomas Liang Chee Fong, Group Managing Director cum Group Chief Executive Officer of Magma Group Berhad, commented, “While our Q1 results reflect transitional headwinds, the completion of our EGM-approved land acquisition and strategic partnership with CHAGEE mark a meaningful shift in our corporate narrative. We are repositioning Magma as a forward-looking hospitality and lifestyle group, leveraging our core strengths to unlock new revenue streams, strengthen brand equity, and align with the evolving Malaysian consumer. With a stronger foundation now in place, we see compelling opportunities to scale recurring income across hospitality, F&B, and property in a sustainable and value-accretive manner.”
With key restructuring initiatives underway, the Group remains focused on execution; unlocking value from its new landbank, optimising hotel operations, and accelerating the growth of its F&B footprint. Magma is confident in its ability to strengthen fundamentals and create long-term shareholder value through disciplined expansion and strategic partnerships.
