“Gadang Holdings cuts net loss to RM9.37M in Q4FY2024 and records RM4.71M annual profit, driven by increased revenue from construction and property divisions.”
Kuala Lumpur, 25th July 2024, 11.00am – Gadang Holdings Bhd’s net loss reduced to RM9.37 million for the fourth quarter ended May 31, 2024 (4QFY2024) from RM27.7 million in the same period last year, due to increased revenue from its construction division.
Revenue grew by 32% to RM150.5 million, up from RM114 million, according to the company’s stock exchange filing.
For the entire fiscal year, Gadang posted a net profit of RM4.71 million, reversing a net loss of RM29.3 million in FY2023. This positive shift was attributed to higher contributions from the property division and lower impairments and accounting provisions compared to the previous year.
Full-year revenue rose to RM583.6 million, an 18% increase from the previous year’s RM496.1 million, largely driven by higher progress in construction projects and improved sales in property development projects.
Looking forward, Gadang expects FY2025 to be challenging and competitive due to fluctuating material prices, inflation, and high interest rates. Despite these challenges, the group plans to actively pursue new business opportunities to boost its revenue.
Gadang stated that its construction division will continue to explore new opportunities to expand its order book while ensuring the timely completion of ongoing projects.
Gadang Holdings announced that the design and development project for the Klang Valley Data Centre in Cyberjaya, set to begin in 1QFY2025, has increased the division’s outstanding order book to RM1.13 billion as of 4QFY2024.
In the property division, Gadang reported sales of RM274.06 million, a 35% rise compared to FY2023. With RM202.30 million in unbilled sales and upcoming launches, the group anticipates this division will enhance its earnings in FY2025.
Gadang’s shares closed 1.5 sen or 3.09% lower at 47 sen on Wednesday, valuing the group at RM338.62 million.
