FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 18 EARNINGS In 2024, the Group achieved another remarkable performance with a historical high in both top and bottom lines. The Group’s earnings before interest, tax, depreciation and amortisation (“EBITDA”) for FY2024 was at RM219.9 million, a 17% increase from the preceding financial year. The Group’s profit after tax of RM151 million was also at its highest, with an increase of 22% compared to last year. NET CASH FREE CASH FLOW 383,877 129,890 411,473 15,244 2023 2023 2023 2023 2024 2024 2024 2024 486,144 141,820 507,154 26,155 WORKING CAPITAL CAPITAL EXPENDITURE 27% 9% 23% 72% The significant growth in profitability was attributable to higher revenue from the Group’s core businesses, including the semiconductor and oil and gas industries, alongside effective cost management. Additionally, the Group’s profit attributable to shareholders also grew by 22% to RM137 million compared to last year. Consequently, the Group’s basic earnings per share increased from 7.12 sen in FY2023 to 8.67 sen in FY2024, reflecting strong financial performance and value creation for shareholders. CASH FLOWS in RM’000 The free cash flow increased from RM129.9 million to RM141.8 million in FY2024 mainly due to higher cash generated from operations. The net cash generated from operating activities in FY2024 increased to RM166.6 million compared with RM144.0 million in FY2023; in alignment with growth in profit. The net cash outflow for financing activities was RM20.0 million in year 2024 as compared to RM71.8 million in year 2023 mainly due to the RM53.3 million received from our warrant holders upon exercise their warrants. Net cash used for investing activities increased from RM8.7 million in the preceding financial year to RM12.8 million in FY2024 mainly due to increase in capital expenditure. FINANCIAL POSITION The Group’s financial position has further strengthened with its shareholders’ fund improving from RM641.2 million to RM720.6 million as of 31 December 2024, an increase of 12%. The Group’s total assets were RM988.5 million as of 31 December 2024, an increase of 12% from RM885.4 million a year ago. This was primarily due to the increase in the Group’s cash and bank balances and fixed deposits with licensed banks by RM89.4 million and also an increase in trade receivables by RM21.6 million. The Group’s liabilities increased by RM18.1 million to RM215.6 million as of 31 December 2024 mainly from increase in trade and other payables. FINANCIAL REVIEW (CONT’D)
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