Malaysian investors, get ready for a deep dive into GREENYIELD BERHAD’s latest financial performance! The company has just released its unaudited condensed consolidated results for the First Quarter ended 31 March 2025, and there’s a significant story to tell. After facing headwinds in the previous year, GREENYIELD has delivered a remarkable turnaround, shifting from a loss to a healthy profit in this quarter.
The core highlight? A dramatic swing in Profit Before Taxation, from a loss of RM1.177 million in the same period last year to a profit of RM0.8 million this quarter. This impressive recovery is certainly grabbing attention and sets a positive tone for the financial year ahead.
Q1 2025: A Strong Turnaround
Let’s break down the key figures that paint this encouraging picture for GREENYIELD BERHAD. The first quarter of 2025 shows a significant improvement across the board compared to the same period in 2024, signaling effective operational adjustments and a more favorable market environment for certain segments.
Q1 2025
Revenue: RM9,005,000
Gross Profit: RM3,871,000
Profit Before Tax: RM800,000
Net Profit: RM800,000
Basic Earnings Per Share: 0.10 sen
Q1 2024
Revenue: RM8,512,000
Gross Profit: RM2,565,000
Profit Before Tax: (RM1,177,000)
Net Profit: (RM1,177,000)
Basic Earnings Per Share: (0.13) sen
As you can see, revenue grew by 5.8% to RM9.005 million, but the real story is the dramatic improvement in profitability. Gross profit surged by over 50%, directly contributing to the positive swing from a pre-tax loss to a pre-tax profit. This also translated into a positive basic earnings per share of 0.10 sen, a welcome change from the loss per share recorded previously.
Driving the Growth: Segmental Performance
The report highlights that the primary catalyst for this impressive turnaround was the performance of the **Rubber Estate** operating segment. This segment saw significantly higher sales and improved profit margins, underpinning the Group’s overall profitability. While other segments like Plantation Inputs experienced a slight decline in external revenue, and Traded Rubber had no external revenue for the period, the strength of the Rubber Estate segment was sufficient to drive the Group’s positive results.
| Business Segment | Revenue (Q1 2025, RM’000) | Revenue (Q1 2024, RM’000) | Change (RM’000) | % Change |
|---|---|---|---|---|
| Plantation Inputs | 1,563 | 2,440 | (877) | -35.9% |
| Traded Rubber | – | 635 | (635) | -100.0% |
| Rubber Estate | 4,837 | 2,842 | 1,995 | +70.2% |
| Household Goods | 2,605 | 2,595 | 10 | +0.4% |
| Total External Revenue | 9,005 | 8,512 | 493 | +5.8% |
The significant increase in revenue from the Rubber Estate segment demonstrates its critical role in the company’s current success. This segment’s robust performance not only boosted top-line growth but also improved the overall profit margins for the Group.
Financial Health and Cash Flow
Beyond the profit and loss statement, the balance sheet and cash flow statement also reflect a stable and improving financial position:
As at 31 March 2025, GREENYIELD’s total assets stood at RM244.169 million, a slight increase from RM243.852 million at 31 December 2024. The total equity attributable to shareholders also saw a modest rise to RM136.081 million from RM135.661 million over the same period, leading to a slight increase in net assets per share from 24.36 sen to 24.44 sen.
A notable positive development is the strong improvement in cash flow. The Group generated RM972,000 in net operating cash flows for the quarter, a significant turnaround from the RM1,010,000 cash used in operations in the same period last year. Net investing cash flows also turned positive at RM66,000, compared to cash used of RM591,000 previously. These positive cash flows contributed to an increase in cash and cash equivalents to RM4,463,000 at the end of the quarter, up from RM1,628,000 a year ago.
This strong cash generation is crucial for the company’s operational stability and future investments, indicating a healthier liquidity position.
The Road Ahead: Navigating Challenges and Seizing Opportunities
While the first quarter results are certainly positive, GREENYIELD acknowledges that the business environment remains challenging. The company faces ongoing geopolitical risks and a high inflationary environment, which continues to impact consumer demand, particularly for its household goods operating segment.
In response, GREENYIELD is not resting on its laurels. The management is committed to closely monitoring the situation and implementing necessary measures to mitigate any adverse impacts. These strategic initiatives include, but are not limited to:
- Cost Rationalisation: Streamlining expenses across both the household goods and plantation business segments to improve efficiency.
- Efficiency Improvements: Enhancing operational efficiency to optimize resource utilization and reduce waste.
- Customer Base Expansion: Efforts to broaden the Group’s customer base in both new and existing territories.
- Equipment and Infrastructure Upgrades: Investing in modernizing facilities to boost productivity and competitiveness.
The company operates within the plantation industry, which is inherently subject to seasonal and cyclical factors like weather patterns and commodity prices. GREENYIELD’s proactive approach to cost management and market expansion suggests a prudent strategy to navigate these external variables.
It’s also worth noting that no dividend has been proposed for this current quarter.
Summary and
GREENYIELD BERHAD’s first quarter 2025 results mark a significant turnaround, with the company successfully converting a loss into a profit. This positive shift was largely propelled by the robust performance of its Rubber Estate segment, which saw substantial increases in both sales and profit margins. The Group also demonstrated improved financial health, with positive operating cash flows and a stronger cash position.
Despite these encouraging results, the company remains vigilant regarding external challenges such as geopolitical risks and inflationary pressures impacting consumer demand, especially for its household goods. Management has outlined clear strategies to counter these headwinds, focusing on cost efficiency, market expansion, and infrastructure upgrades.
For Malaysian retail investors, it’s important to consider both the strong rebound and the ongoing external market dynamics. The company’s proactive measures to enhance operational efficiency and expand its market presence suggest a forward-looking approach in a volatile environment.
Key points to consider moving forward include:
- The sustainability of the Rubber Estate segment’s strong performance amidst fluctuating commodity prices.
- The effectiveness of cost rationalization and efficiency improvements in mitigating inflationary pressures.
- The success of efforts to expand the customer base and upgrade infrastructure in a competitive market.
- The impact of global geopolitical risks on overall consumer demand for the household goods segment.
What’s Your Take?
GREENYIELD BERHAD’s Q1 2025 results certainly demonstrate a commendable level of resilience and effective strategic adjustments, particularly within its core plantation business. The shift from a loss to a profit, coupled with improved cash flow, is a strong indicator of management’s ability to navigate a challenging economic landscape.
Do you believe GREENYIELD BERHAD can sustain this positive momentum and successfully navigate the challenging global economic landscape? Share your thoughts in the comments section below!
