REXIT BERHAD’s Latest Report: Revenue Climbs, But Profits Take a Tumble
REXIT BERHAD, a notable player on the ACE Market, has just released its financial results for the second quarter ended June 30, 2025. The report paints a complex picture for investors: while the company successfully grew its revenue, its profitability saw a significant contraction. This mixed performance raises important questions about the company’s current operational landscape and future strategy. Let’s dive deep into the numbers to understand what’s driving these results.
A Tale of Two Tapes: Revenue Up, Profits Down
The headline figures from this quarter reveal a diverging trend between the company’s top-line and bottom-line performance. While managing to increase sales is a positive sign of market presence, the sharp fall in profits is a key area of concern that warrants closer inspection.
The most striking takeaway is the 43.2% decrease in pre-tax profit, which occurred despite a 6.0% increase in revenue compared to the same quarter last year. This suggests that the company is facing significant pressure on its profit margins.
Financial Performance at a Glance
To better understand the performance, let’s compare the key metrics for the second quarter of 2025 against the same period in 2024.
Quarterly Revenue
Q2 2025 (Current)
MYR 7.84 million
Q2 2024 (Previous)
MYR 7.40 million
REXIT posted a healthy 6.0% year-on-year revenue growth. This indicates sustained demand for its products or services and effective sales strategies. However, this top-line success did not translate into bottom-line gains.
Pre-Tax Profit
Q2 2025 (Current)
MYR 1.99 million
Q2 2024 (Previous)
MYR 3.51 million
Profit before tax saw a steep decline of 43.2%. This significant drop suggests that rising operational costs, higher expenses, or perhaps strategic investments that have yet to yield returns are eating into the company’s profitability.
Net Profit & Earnings Per Share (EPS)
The impact on net profit was even more pronounced, directly affecting shareholder returns as reflected in the Earnings Per Share (EPS).
| Metric | Q2 2025 (Current) | Q2 2024 (Previous) | Change |
|---|---|---|---|
| Net Profit | MYR 1.43 million | MYR 2.95 million | -51.5% |
| Earnings Per Share (EPS) | 0.83 sen | 1.70 sen | -51.2% |
The net profit was more than halved, leading to a corresponding drop in EPS from 1.70 sen to 0.83 sen. This is a critical point for investors, as it directly relates to the profitability attributable to each share.
Navigating Headwinds: Risks and Future Outlook
The latest results highlight a crucial challenge for REXIT: managing costs and protecting its margins. While the report itself doesn’t provide a detailed explanation for the profit decline, we can analyze the potential risks and prospects.
- Margin
