TOMEI Shines Bright in Q1 2025: A Gem of a Performance Boosted by Festive Seasons
Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial report from TOMEI CONSOLIDATED BERHAD for the first quarter ended 31 March 2025. This report isn’t just a dry set of numbers; it’s a testament to the company’s resilience and strategic positioning in the Malaysian market. What truly stands out this quarter is TOMEI’s impressive growth in revenue and profit, significantly bolstered by key festive seasons, alongside a reassuring dividend announcement for its shareholders.
Join me as we unwrap the details and explore what’s driving TOMEI’s sparkling performance and what lies ahead for this prominent jewellery retailer.
Core Financial Highlights: A Quarter of Solid Growth
TOMEI kicked off the financial year with a robust performance, demonstrating strong top-line and bottom-line growth. Let’s look at the key figures:
Overall Group Performance
The Group recorded a commendable increase in revenue and profit before tax for the current quarter compared to the previous year corresponding quarter.
Q1 2025 (RM’000)
Revenue: 348,006
Profit Before Tax: 38,068
Net Profit (Attributable to Owners): 27,845
Basic Earnings Per Share (sen): 20.09
Q1 2024 (RM’000)
Revenue: 322,758
Profit Before Tax: 29,445
Net Profit (Attributable to Owners): 20,936
Basic Earnings Per Share (sen): 15.11
This translates to an 8% increase in revenue and a significant 29% surge in Profit Before Tax compared to the previous year corresponding quarter. Basic Earnings Per Share also saw a healthy jump from 15.11 sen to 20.09 sen, reflecting enhanced profitability for shareholders.
Segmental Performance: Retail Shines Brightest
A closer look at TOMEI’s two core segments reveals the driving forces behind this growth:
| Segment | Q1 2025 Revenue (RM’000) | Q1 2024 Revenue (RM’000) | Revenue Change (%) | Q1 2025 PBT (RM’000) | Q1 2024 PBT (RM’000) | PBT Change (%) |
|---|---|---|---|---|---|---|
| Retail | 286,741 | 277,590 | +3% | 34,580 | 25,835 | +34% |
| Manufacturing & Wholesale (M&W) | 63,011 | 68,566 | -8% | 3,488 | 3,610 | -3% |
The Retail segment was the star performer, with a 3% revenue increase, primarily attributed to higher retail gold prices. More impressively, its Profit Before Tax soared by 34%, driven by improved gross profit margins. This highlights the strong consumer demand for jewellery, particularly during the festive seasons like Chinese New Year and Hari Raya, which traditionally boost sales in Malaysia.
Conversely, the Manufacturing & Wholesale (M&W) segment experienced an 8% decrease in revenue and a 3% dip in Profit Before Tax, mainly due to lower sales volume. Despite this, the overall group performance remained strong, underscoring the dominance and profitability of the retail arm.
Financial Health and Cash Flow
Beyond the income statement, TOMEI’s balance sheet and cash flow statements provide further insights into its financial health.
Balance Sheet Snapshot
As at 31 March 2025, TOMEI’s total assets stood at RM 878.3 million, an increase from RM 842.0 million at 31 December 2024. Total equity also grew to RM 489.9 million from RM 461.4 million, pushing the net assets per share up from RM 3.33 to RM 3.53. This indicates a stronger asset base and shareholder value.
The Group’s net gearing ratio, a measure of financial leverage, was 0.53 as of 31 March 2025, a slight increase from 0.52 as of 31 March 2024. While a slight increase, it remains within the Group’s capital management objectives, suggesting a controlled approach to financing its operations.
Cash Flow from Operations
A significant turnaround was observed in cash flow from operating activities. For the three months ended 31 March 2025, TOMEI generated RM 17.8 million in net cash from operations, a substantial improvement from the RM 13.5 million cash used in operations during the previous year corresponding quarter. This shift indicates a more efficient management of working capital and improved operational liquidity.
Strategic Moves and Shareholder Returns
TOMEI has also been active in strategic corporate developments. The acquisition of a 70% equity interest in Gemological Institute of Malaysia Sdn. Bhd. by its wholly-owned subsidiary, Gemological Int Malaysia Sdn. Bhd., for RM200,000, indicates a move to diversify or strengthen its position in related educational services within the gemological field.
In a positive development for shareholders, TOMEI announced a final single tier dividend of 2.5 sen per ordinary share for the financial year ended 31 December 2024, amounting to RM3.465 million. This dividend is scheduled to be paid on 13 June 2025, reflecting the company’s commitment to returning value to its investors.
Risks and Future Prospects
While the first quarter has been strong, TOMEI acknowledges the prevailing challenges in the global economic landscape. The report highlights potential headwinds:
- Global Trade Tension: This has led to an increase in the cost of doing business, particularly impacting supply chains.
- Macro Domestic Consumption: Uncertainty from global events could indirectly lead to a decrease in local consumer spending.
Despite these challenges, the Board remains optimistic, attributing the current quarter’s strong performance to the ongoing festive seasons. The company’s strategy involves vigilant monitoring of market developments and taking necessary actions to sustain profitability for the remainder of the financial year. TOMEI’s ability to capitalize on festive demand and manage its gross profit margins will be crucial in navigating these external pressures.
Summary and
TOMEI CONSOLIDATED BERHAD has delivered a robust first quarter for FY2025, driven by strong retail segment performance and boosted by festive season demand and higher gold prices. The significant increase in revenue and profit before tax, coupled with improved cash flow from operations, paints a picture of a company effectively managing its core business. The announced dividend further underscores its commitment to shareholder returns.
However, the company operates within a dynamic environment. Key risk points to monitor include:
- The impact of global trade tensions on supply chain costs.
- Potential shifts in macro domestic consumption due to economic uncertainties.
- Fluctuations in gold prices, which can significantly affect revenue and profit margins.
Looking ahead, TOMEI’s focus on vigilant monitoring and adaptive strategies will be vital. The company’s strong brand presence and ability to tap into cultural spending habits during festive periods suggest a resilient business model. It will be interesting to observe how TOMEI continues to leverage these strengths while mitigating external risks in the coming quarters.
From a professional standpoint, TOMEI’s Q1 2025 results demonstrate a commendable ability to capitalize on market opportunities, especially during peak festive seasons. The improvement in gross profit margins for the retail segment is a positive sign of efficient operations and pricing strategy. While the slight increase in gearing ratio is noted, the overall financial health appears stable, supported by positive operating cash flow. The strategic acquisition of a stake in Gemological Institute of Malaysia could also hint at future diversification or vertical integration efforts, which are worth keeping an eye on.
What are your thoughts on TOMEI’s latest performance? Do you think the company can maintain this growth momentum in the next few years, especially given the global economic uncertainties? Share your views in the comments section below!
