PGF Capital Berhad announced its fourth quarter and full year financial results for the financial year where it achieved revenue of RM128.7 million in FY24, marking a 41.3% Year-on-Year increase from RM91.1 million a year ago. The group said this was primarily driven by higher sales contributions from the insulation business on the back of strong demand, particularly from the Oceania market.
On profitability, the Group reported a profit before tax of RM15 million in FY24 vis-à-vis RM24.3 million last year, mainly due to a reversal in 4QFY24 of a RM5.8 million grant for modernisation and equipment upgrade amounting that was recognised earlier during the 2nd quarter of the financial year. The grant it said will now be recognised over the useful life of the upgraded machinery. Meanwhile, the FY23’s PBT of RM24.3 million was augmented by a one-off reversal of RM10.7 million in impairment losses on investment properties.
Commenting on the Group’s financial performance, Group Chief Executive Officer, Mr Fong Wern Sheng (邝汶城), said, “The Insulation and Related Products segment is experiencing robust growth in demand especially from Australia and New Zealand, following the pickup in construction activities there. In fact, our plant which has 25,000 metric tonnes per year capacity is currently running at full capacity, and expansion plans are underway. Looking ahead, we expect the demand growth trajectory to sustain with the new energy standards under the revised Australian building code taking effect mid of this year, which will further spur the use of insulation products like ours.”
For the quarter under review, increased sales from the insulation business drove total revenue up by 33.8% YoY to RM33.4 million from RM25 million recorded a year ago. The Group reported a loss before tax of RM1.7 million, versus profit before tax of RM11.4 million in the previous year, affected by the reversal of grant.
Excluding the impact of the grant reversal, the Group would have recorded a healthy profit before tax of RM4.0 million in 4QFY24. Meanwhile, the RM11.4 million profit before tax in the corresponding quarter of the previous financial year included a reversal of impairment loss of RM10.7 million on its investment properties.
