Lotus KFM Berhad’s Latest Quarter: A Turnaround Story in the Making?
Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest unaudited consolidated results for Lotus KFM Berhad for the financial period ended 31 March 2025. This report offers a fascinating glimpse into the company’s performance, revealing a significant shift from the red to the black. For Malaysian retail investors, understanding these shifts is crucial in navigating the market. Let’s break down the numbers and see what’s truly brewing at Lotus KFM.
Core Financial Highlights: From Loss to Profitability
The most striking takeaway from this quarter’s report is Lotus KFM Berhad’s impressive swing back into profitability. After facing losses in the previous corresponding period, the company has managed a remarkable turnaround, driven by a combination of revenue growth and improved cost management in certain areas.
Quarterly Performance (Current Quarter vs. Same Period Last Year)
Q1 FY2025 (31 March 2025)
Revenue: RM12,975,000
Gross Profit: RM341,000
Profit Before Tax: RM215,000
Profit After Tax: RM221,000
Basic Earnings Per Share: 0.02 sen
Q1 FY2024 (31 March 2024)
Revenue: RM12,622,000
Gross Profit: RM383,000
Profit Before Tax: (RM259,000)
Profit After Tax: (RM253,000)
Basic Earnings Per Share: (0.02 sen)
As you can see, the company’s Profit Before Tax surged by a staggering 183.01% from a loss of RM259,000 to a profit of RM215,000 in the current quarter compared to the same period last year. Similarly, Profit After Tax saw an even more significant jump of 187.35%, moving from a loss of RM253,000 to a profit of RM221,000. This is a crucial indicator of improving operational efficiency and financial health.
Revenue Growth and Gross Profit Dynamics
Looking at the revenue, Lotus KFM recorded a modest increase of 2.80% for the current quarter, reaching RM12,975,000 from RM12,622,000 in the previous year’s corresponding quarter. More impressively, comparing it to the immediate preceding quarter (Q4 FY2024), revenue grew by 9.56% from RM11,843,000, primarily attributed to an increase in sales volume. This quarter-on-quarter growth signals positive momentum in their core business.
However, the gross profit picture is a bit nuanced. While the current quarter’s gross profit of RM341,000 is a 20.81% improvement from the immediate preceding quarter’s RM282,000 (thanks to reduced overhead costs), it represents an 11.05% decrease compared to RM383,000 in the same quarter last year. This suggests that while recent cost management efforts are bearing fruit, the overall gross margin might still be under pressure compared to a year ago, possibly due to higher input costs or competitive pricing.
Cumulative Performance (Six Months Ended 31 March 2025 vs. 31 March 2024)
For the six-month period, Lotus KFM also demonstrated a strong recovery. Revenue for the cumulative period increased by 5.45% to RM24,818,000 from RM23,534,000. The cumulative Profit Before Tax swung from a loss of RM242,000 to a profit of RM230,000, marking a 195.04% improvement. Similarly, cumulative Profit After Tax turned around by 205.22%, reaching RM242,000 from a loss of RM230,000.
Strengthening Balance Sheet and Cash Position
The company’s financial position also shows significant improvement. Total assets expanded to RM126,559,000 as at 31 March 2025, up from RM102,274,000 as at 30 September 2024. This growth is largely reflected in the surge in cash and cash equivalents. Fixed deposits with licensed banks saw a substantial increase to RM36,889,000 from RM12,404,000 over the six-month period. This healthy cash position was significantly boosted by the issuance of shares pursuant to warrant exercises, bringing in RM24,783,000 in cash from financing activities during the period.
While cash flow from operations remained negative at (RM3,729,000) for the six-month period, the strong inflow from financing activities has significantly bolstered the overall cash reserves, leading to a substantial increase in cash and cash equivalents at the end of the period to
