- For the cumulative nine months ended Sept 30, 2024 (9MFY2024) the group posted revenue of RM286.4 million and a net profit of RM16.6 million, primarily driven by the trading and services segment, which contributed 83.4% of the group’s revenue.
KUALA LUMPUR (Nov 21): Fiamma Holdings Bhd (KL:FIAMMA) saw its net profit for the quarter ended Sept 30, 2024 (3QFY2024) decrease by 64.74% on a quarterly basis to RM4.04 million, as its profit before tax (PBT) declined 55.14% in the quarter due to losses at its property development segment.
Additionally, a net loss on the sales of other investments, compared to the net gain recorded in the previous quarter, further contributed to the lower PBT in the current quarter, said Fiamma in Bursa filing on Thursday.
The group’s PBT declined to RM7.02 million during the quarter from RM15.65 million in the preceding quarter. This is despite its revenue rising 7% to RM98.6 million, compared with RM92.18 million in the quarter ended June 30, 2024 (2QFY2024).
Basic earnings per share stood at 0.76 sen for the period. No dividend was declared during the quarter.
For the cumulative nine months ended Sept 30, 2024 (9MFY2024) the group posted revenue of RM286.4 million and a net profit of RM16.6 million, primarily driven by the trading and services segment, which contributed 83.4% of the group’s revenue.
“This segment recorded revenue of RM238.7 million and a PBT of RM26.91 million in the current financial period,” it said.
The property development segment accounted for 15.4% of the group's revenue. For 9MFY2024, it reported revenue of RM44.16 million and a pretax loss of RM6.37 million. The loss was mainly due to sales and marketing costs for newly launched projects, with minimal revenue recognized as some projects are still in early development stages.
Revenue for 2024 will continue to benefit from completed and unsold residential and commercial properties.
“The proposed residential developments on Jalan Yap Kwan Seng, Kuala Lumpur and Johor Bahru are expected to further augment the Group’s income stream upon their launch and sale,” it added.
Fiamma has changed its financial year end from Sept 30 to Dec 31.
Going forward, Fiamma expects the group’s performance for the remaining financial year 2024 to be challenging, in light of the current economic outlook and heightened competition.
The group said the rising ocean freight and raw material costs, as well as the depreciation of the ringgit against major currencies in the first and second quarters of the year, had reshaped the industry’s supply chain, production costs and overall market dynamics.
The implementation of a 2% increase in sales and service tax, along its extended scope covering repair and maintenance, warehouse management and logistics services, coupled with the diesel subsidy rationalization, have led to a rise in business operating costs, the group said.
Nevertheless, the group will continue to invest in brand-building efforts and promotional activities to strengthen and expand its distribution network in Malaysia for its various brands of home appliances, sanitaryware, kitchen and wardrobe system and built-in furniture, medical devices and healthcare products.
“Fiamma also aims to expand the product range to include the latest trends, lifestyle enhancement, cutting-edge smart connectivity and Internet of Things (IoT) solutions,” it said.
At the close of trade, Fiamma’s share price was down 2 sen or 1.89% at RM1.04, valuing the group at RM551.44 million.
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