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 second quarter ended 30 June 2025 (“Q2 FY2025”). Magma recorded revenue of RM7.034 million, reflecting a marginal year-on-year increase from RM6.988 million in the corresponding quarter last year (“Q2 FY2024”).
Magma Group Berhad
Revenue was mainly supported by Hotel Operations (RM6.385 million) and Hotel Management (RM0.649 million), while the Property Development segment has yet to contribute as construction activities are pending contractor finalisation.
The Company posted a loss before tax (“LBT”) of RM6.249 million, compared to an LBT of RM1.410 million in Q2 FY2024. The wider loss was largely due to one-off expenses, namely the Redeemable Convertible Notes (“RCN”) administration fee of RM4.675 million and corporate exercise expenses of RM0.276 million related to the acquisition of land and capital reduction.
On a quarter-on-quarter basis, Magma’s revenue improved 11% from RM6.336 million in Q1 FY2025, supported by stable hospitality performance. LBT narrowed 8% to RM6.249 million in Q2 FY2025 from RM6.789 million in Q1 FY2025, reflecting stronger cost discipline and the absence of earlier one-off adjustments.
During the quarter, Magma also completed key corporate initiatives, notably the acquisition of a strategic 2.26-acre land parcel in Mont Kiara valued at RM80 million, which was settled through a combination of cash, issuance of new shares, and Redeemable Non-Cumulative Preference Shares (“RNCPS”). This land will be earmarked for a mixed commercial development, strengthening Magma’s urban property pipeline and asset base.
The Company also advanced its lifestyle diversification strategy through the formation of Chagee Magma Sdn Bhd, a joint venture with CHAGEE (M) Sdn Bhd. With a 40% stake, Magma will work alongside CHAGEE to expand premium tea retail outlets across Malaysia, tapping into the growing consumer demand for innovative lifestyle experiences.
Dato’ Sri Thomas Liang Chee Fong, Group Managing Director cum Group Chief Executive Officer of Magma Group Berhad said, “Our Q2 results reflect encouraging operational resilience with improved quarter-on-quarter performance. While corporate-related costs weighed on profitability, our strategic land acquisition and entry into lifestyle F&B are repositioning Magma for sustainable growth. These initiatives expand our asset base and diversify income streams, paving the way for long-term value creation.”
With restructuring initiatives completed and new ventures underway, Magma remains cautiously optimistic about its trajectory. The Company expects rising tourist arrivals supported by government initiatives, alongside disciplined cost management and strategic diversification, to provide a stronger foundation for long-term shareholder value creation.
