SHAH ALAM: Kumpulan Perangsang Selangor Berhad (KPS Berhad) announced a higher revenue of RM1,064.8 million for the fiscal year ended Dec 31, 2024, compared with RM1,046.1 million recorded in the same period last year (FY2023).
The operating profit rose from RM38.8 million to RM121.0 million, mainly because of the gains from the divestment of 50% of its equity stake in Kaiserkorp Corporation Sdn Bhd in March 2024.
Consequently, the Group’s profit after tax and zakat (PAT) leapt to RM73.1 million from RM1.4 million in the corresponding period last year.
KPS Berhad registered RM274.6 million in revenue for the quarter ended Dec 31, 2024, slightly higher than the RM273.5 million it recorded in the corresponding quarter last year (Q4’23), reflecting a more sanguine segmental performance across its subsidiaries despite challenging market conditions.
Contributing 84.6% to the Group revenue, the manufacturing business, which comprises Toyoplas Manufacturing (Malaysia) Sdn Bhd, CPI (Penang) Sdn Bhd, MDS Advance Sdn Bhd, and Century Bond Bhd (CBB), posted RM232.2 million, compared with RM230.8 million reported in Q4’23.
Toyoplas remained the highest contributor to the Group; its revenue increased by RM13.4 million to RM119.1 million compared with the corresponding quarter last year. This was mainly attributed to improved sales from its consumer electronics segment, supported by the new assembly project it secured in 2024. CPI’s revenue also improved by RM4.9 million to RM55.4 million due to improved sales across all business segments except communications and information technology and automotive segments.
Meanwhile, CBB’s contribution came in lower by RM15.8 million YoY to RM53.0 million on reduced order volume, which resulted from the competition in the packaging market and nearshoring activities by its customers in the previous quarters. Similarly, due to persistent weaker demand in certain healthcare sectors, which resulted from customer overstocking and cautious inventory control measures, MDS Advance’s contribution also came in lower by RM0.8 million YoY to RM4.9 million this quarter.
The trading business, represented by Aqua-Flo Sdn Bhd, contributed RM42.3 million to the Group revenue, reflecting a 5% YoY increase driven by higher sales of water chemicals. The infrastructure business contributed the remaining RM0.1 million in revenue.
For the quarter, other income rose to RM22.4 million from RM18.9 million, mainly due to foreign exchange gain from the strengthening US dollar during the quarter. Other expenses eased to RM44.2 million from RM54.2 million, largely due to the absence of restructuring expenses incurred by Toyoplas in FY2023. Consequently, operating profit increased significantly to RM27.4 million from RM2.9 million previously. With the repayment of borrowing ongoing, the Group reduced its finance costs by RM4.1 million.
As a result, PAT turned around to RM10.7 million from a loss position of RM5.9 million previously. Having adjusted for Tax and Zakat and non-controlling interests, the Group’s Profit Attributable to Owners of the Parent (PATAMI) surged to RM12.2 million, compared with the RM5.9 million losses it recorded in Q4’23.
The momentum of KPS Berhad’s business activity varied across countries and sectors, due to elevated inflationary pressure, which slowed economic activities. Weaker consumer sentiment from industrially dependent countries dampened demand in the packaging and metal machining business. In addition, customer overstocking in certain healthcare sectors led to lower revenue traction. Reflecting these challenges that were prevalent during the year, the Group reported only a marginal 1.8% increase in revenue to RM1,064.8 million from RM1,046.1 million recorded in the previous year.
The manufacturing business anchored the Group revenue with RM882.5 million, or 82.9%, to the total revenue, with an RM4.9 million increase compared with FY2023’s RM877.6 million. Meanwhile, the trading sector business contributed RM178.3 million, or 16.7% of the Group revenue, an increase of RM18.2 million compared to the previous year’s RM160.1 million. The remaining revenue contribution was from the infrastructure and property investment businesses, amounting to RM4.0 million.
For the year, other income increased to RM163.0 million from RM73.0 million registered in the previous year, driven by the gain from the disposal of a 50% equity stake in Kaiserkorp. Other expenses increased to RM233.4 million from RM203.5 million in FY2023, primarily due to the implementation of a long-term incentive plan. Consequently, the Group’s operating profit rose to RM121.0 million compared to RM38.8 million in FY2023. KPS Berhad reduced finance costs by RM8.1 million for the year with the repayment of Sukuk by utilising the proceeds from the divestment of a 50% equity stake in Kaiserkorp and the disposal of Plaza Perangsang. Finally, the share of profit from the associates was higher by RM1.0 million, mainly due to higher contributions from NGC Energy Sdn Bhd following additional traction from the launch of its new product.
Correspondingly, the Group reported a higher PAT of RM73.1 million, a significant increase from RM1.4 million recorded in the previous year. Similarly, PATAMI turned around significantly to RM71.9 million from the previous year’s loss of RM1.6 million.
