Varia Bhd returned to black with profit before tax (PBT) of RM5 million in third quarter of the financial year 2024 (Q3 FY2024), a substantial recovery from loss before tax (LBT) of RM10.8 million in the same period last year.
“This impressive growth has been primarily fuelled by the construction segment, mainly from the newly-acquired Pembinaan Teguh Maju Sdn Bhd (PTM),” its said today (Feb 22) in a statement announcing the quarterly results.
In a turnaround from the previous year’s corresponding quarter (Q3 FY2023), Varia said its revenue surged to RM42.1 million in Q3 FY2024, up by 169% from RM15.63 million in Q3 FY2023, showcasing the immediate positive impact of the acquisition.
“The construction segment alone generated RM41.8 million in revenue and approximately RM9 million PBT. PTM, consolidated into Varia’s financials from 1 November 2023, contributed 68% of the total revenue, amounting to RM29.1 million, and a PBT of RM8.5 million.”
The property development and construction player added key projects such as Kem Bera, Perkeso, Kuarters Hospital Pulau Pinang (KHPP), Pulau Indah, and UDA in Penang were significant contributors to the gross profit of RM10.6 million for the quarter.
For the property development segment, the group had seen maiden revenue contribution from Taman Arowana Phase 1 project, amounting to RM0.3 million in the current quarter.
“The management strategies are to align the construction progress with sales, which are expected to expedite in revenue contribution in the upcoming quarters,” it added.
Meanwhile for the nine months ended 31 December 2023 (9M FY2024), its revenue stood at RM82.5 million with a PBT of RM6.4 million, marking a substantial improvement from the revenue of RM33.7 million and a LBT of RM16.3 million in the corresponding period of the previous year (9M FY2023).
Quarter-on-quarter, its revenue increased by 106% to RM42.1 million, and profit before tax grew by 301% to RM5.0 million, highlighting the impactful integration of PTM into Varia’s operations and the resultant financial uplift, it added.
Varia managing director Datuk Benson Lau said in the wake of our strategic transformation and the successful acquisition of PTM, it has demonstrated remarkable financial performance, underscored by our recent Q3 FY2024 results.
“These achievements reflect not only our capability to execute significant projects but also our foresight in aligning with industry trends.
“With the addition of high-impact projects like the Rancangan Tebatan Banjir Sungai Klang, and the steady progress in our property development segment, we are poised for sustained growth.
“We remain optimistic about the future, driven by our strategic initiatives and the potential for further success in the vibrant Malaysian economic landscape,” he added.
