For the financial year ended 30 September 2025, despite the Group recording lower revenue by 10.1% to RM953.3 million (FY2024: RM1,060.9 million), the Group recorded higher profit before tax (PBT) by 15.3% to RM166.8 million (FY2024: RM144.7 million). This was mainly due to higher average selling price for crude palm oil (CPO) and palm kernel (PK) coupled with the commencement of sale of crude palm kernel oil (CPKO) in February 2025 from Plantation segment, increase in average rental yield coupled with the higher of changes in fair value gains on investment properties of RM8.4 million (FY2024: RM7.7 million) from Hotel and Property Investment segment. The segment below discusses further details of the Group’s financial performance. LIQUIDITY AND CAPITAL RESOURCES For FY2025, the cash and cash equivalents of the Group increased by RM116.7 million to RM598.8 million as at 30 September 2025 (FY2024: increased by RM153.8 million to RM497.8 million as at 30 September 2024), which was culminated from the following cash flows activities: Net cash generated from/ (used in) FY2025 RM’000 FY2024 RM’000 Changes (%) Operating activities 204,613 114,964 78.0 Investing activities (94,772) (136,344) 30.5 Financing activities 6,822 175,228 (96.1) Increase in cash and cash equivalents 116,663 153,848 24.2 For FY2025, the Group recorded higher cash flows generated from operating activities following the handing over vacant possession of our Mirai Residences @ Kajang 2 Precinct 1 and Akina @ Kajang 2 Precinct 3 phase 1 and phase 2 by Property Division and higher sales of CPO, PK and CPKO by Plantation Division. Net cash used in investing activities was higher in the previous financial year was mainly due to acquisition of a subsidiary by Plantation Division and deposits paid for acquisition of a parcel of freehold land for property development by Property Division. In addition, the Property Division also incurred additional development expenditures on a parcel of joint development land which target to be launched in Year 2026. The cash flows from financing activities decreased following decrease in net drawdown of bank borrowings totaling RM53.5 million in FY2025 (FY2024: RM80.5 million) and absence of the net proceeds from subscription of MKH Oil Palm (East Kalimantan) Berhad’s (MKHOP) initial public offering (IPO) totalling RM127.5 million by the public which was completed in April 2024. The Group’s capital resources comprise primary cash flows generated from operating activities, cash and cash equivalents, term deposits, shortterm placements and available lines of credit. As at 30 September 2025, the Group’s net gearing maintained at net cash positive position (FY2024: net cash positive). 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. Cash and cash equivalent of the Group increased by RM116.7 million to RM598.8 million as at 30 September 2025. MANAGEMENT DISCUSSION AND ANALYSIS PG | 38 ANNUAL REPORT 2025 MKH BERHAD
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