For the financial year ended on 30 September 2024, although the Group experience a slight decrease in revenue by 0.3% to RM1,060.9 million (FY2023: RM1,063.8 million), the Group recorded higher profit before tax (PBT) by 23.4% to RM144.7 million (FY2023: RM117.2 million) mainly due to higher gross profit from the Plantation Division due to higher CPO production, higher average CPO selling price per MT, lower average CPO production cost per MT and inclusion of changes in fair value gains on investment properties of RM7.7 million (FY2023: changes in fair value losses on investment properties of RM0.9 million). The segment below discusses further details of the Group’s financial performance. LIQUIDITY AND CAPITAL RESOURCES For FY2024, the cash and cash equivalents of the Group increased by RM148.0 million to RM492.0 million as at 30 September 2024 (FY2023: decreased by RM42.1 million to RM350.0 million as at 30 September 2023), which was culminated from the following cash flows activities: Net cash generated from/(used in) 2024 2023 Changes RM’000 RM’000 (%) Operating activities 114,964 143,690 (20.0) Investing activities (136,344) (69,443) (96.3) Financing activities 175,228 (116,360) 250.6 Increase in cash and cash equivalents 153,848 (42,113) 465.3 For FY2024, the Group recorded lower cashflows generated from operating activities following the lower profit contribution from the ongoing project developments. Net cash used in investing activities increased mainly due to acquisition of a subsidiary, land banks for property development and construction of a new crude palm kernel oil mill. The cash flows from financing activities increased following a net drawdown of bank borrowings totalling RM80.5 million in FY2024 (FY2023: net repayment of RM52.2 million) and net proceeds from subscription of MKH Oil Palm (East Kalimantan) Berhad’s initial public offering (IPO) totalling RM127.5 million in FY2024 (FY2023: Nil) by the public. The Group’s capital resources comprise primary cash flows generated from operating activities, cash and cash equivalents, short-term placements and available lines of credit. As at 30 September 2024, the Group’s net gearing improved to net cash positive (FY2023: 0.7 times). The Group continues to uphold a prudent approach towards managing its capital resources to ensure adequacy in meeting operational requirements and capital expenditure from time to time. Net proceeds from subscription of MKH Oil Palm (East Kalimantan) Berhad’s IPO totalling RM127.5 million in FY2024 (FY2023: Nil) by the public. RM127.5 million Sustaining Lives, Empowering Communities Governance That Inspires Confidence Financial Insights Through Numbers Empowering Ownership PG. 45
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