ANNUAL REPORT 2025 021 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL REVIEW Group Revenue and Profitability The Group recorded revenue of RM1.93 billion in FY2025, an increase of RM0.72 billion (59.5%) compared to RM1.21 billion in FY2024. The revenue growth was primarily driven by stronger external sales across all active business divisions. Gross profit (“GP”) rose significantly to RM234.68 million, up RM136.21 million (138.3%) from RM98.47 million in FY2024. The improvement in GP was attributable to stronger contributions from all the business divisions, underpinned by higher revenue. Other operating income declined to RM4.50 million, from RM52.06 million in FY2024, as FY2024 recorded gains from remeasurement of financial liabilities and write-back of land held for development, totaling RM2.51 million, and reversal of impairment allowances in relation to trade receivable and contract asset, totaling RM43.52 million. Administration expenses increased to RM63.42 million, from RM57.13 million in FY2024, driven by higher human resource costs and provision for doubtful debts. Finance costs rose to RM38.65 million, from RM25.32 million in FY2024, in line with greater utilization of bank facilities to support the Group’s expanded operations. The Group’s share of profit from joint ventures improved, reflecting stronger contributions from the quarry business. The effective tax rate of FY2025 was higher than the statutory rate applicable to the Group as certain expenses were disallowed for tax deduction under tax regulations and reversal of deferred tax assets on unutilised tax losses of a subsidiary. Overall, the Group recorded profit before tax of RM138.11 million and profit after tax of RM106.83 million in FY2025 against profit before tax of RM68.40 million and profit after tax of RM50.78 million in FY2024.
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