ICONIC WORLDWIDE BERHAD: Navigating Growth and Challenges in Q3 FY2025
Another quarter has unfolded, and it’s time to delve into the latest financial performance of ICONIC WORLDWIDE BERHAD for its third financial quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s strategic direction, highlighting its efforts to enhance profitability amidst evolving market dynamics. While revenue remained stable, a significant reduction in quarterly losses and a positive cumulative profit stand out, signaling a promising trajectory for the Group.
Join us as we break down the key figures and insights from ICONIC WORLDWIDE BERHAD’s recent unaudited financial report, exploring what these numbers mean for its future and for Malaysian retail investors.
Core Data Highlights: A Closer Look at Performance
ICONIC WORLDWIDE BERHAD’s third quarter saw mixed results, but with notable improvements in key profitability metrics when compared to the same period last year. Here’s a snapshot:
Quarterly Performance: Q3 FY2025 vs. Q3 FY2024
Q3 FY2025
Revenue: RM11.57 million
Operating Loss: RM(0.98) million
Profit Before Interest & Tax (PBIT): RM0.70 million
Loss Before Tax (LBT): RM(0.56) million
Loss After Tax (LAT): RM(0.56) million
Basic Loss Per Share: (0.03) sen
Q3 FY2024
Revenue: RM11.55 million
Operating Loss: RM(6.91) million
Loss Before Interest & Tax (LBIT): RM(6.83) million
Loss Before Tax (LBT): RM(8.08) million
Loss After Tax (LAT): RM(8.08) million
Basic Loss Per Share: (1.44) sen
While revenue remained relatively stable with a marginal 0.16% increase, the significant improvements are evident in the reduction of losses. The operating loss for Q3 FY2025 shrunk by an impressive 85.89%, and the Loss Before Tax (LBT) and Loss After Tax (LAT) decreased by 93.05% compared to the same quarter last year. This remarkable turnaround from a substantial loss to a much smaller one, even achieving a positive PBIT, is largely attributed to significant changes in the sales mix and a corresponding decline in direct and indirect operating expenses following the discontinuation of glove manufacturing activities.
Cumulative Performance (9 Months Ended 31 March 2025)
For the cumulative nine-month period, ICONIC WORLDWIDE BERHAD reported a total revenue of RM35.05 million and a commendable Profit Before Tax (PBT) and Profit After Tax (PAT) of RM3.13 million. This translates to a basic earnings per share of 0.19 sen, indicating a positive shift in overall financial health for the period.
Quarter-on-Quarter (QoQ) Performance: Q3 FY2025 vs. Q2 FY2025
Q3 FY2025
Revenue: RM11.57 million
Operating Loss: RM(0.98) million
Profit Before Interest & Tax (PBIT): RM0.70 million
Loss Before Tax (LBT): RM(0.56) million
Loss After Tax (LAT): RM(0.56) million
Q2 FY2025
Revenue: RM11.16 million
Operating Loss: RM(0.54) million
Profit Before Interest & Tax (PBIT): RM3.05 million
Profit Before Tax (PBT): RM1.77 million
Profit After Tax (PAT): RM1.77 million
Comparing the current quarter to the immediate preceding quarter (Q2 FY2025), revenue saw a slight increase of 3.71%. However, the operating loss increased by 80.89%, mainly due to higher operating expenses. Despite registering a PBIT, it was lower than the previous quarter, and the higher finance costs led to a net loss for the quarter, contrasting with the profit recorded in Q2 FY2025.
Segmental Revenue Analysis (Q3 FY2025 vs. Q2 FY2025)
The Group’s revenue composition across its segments showed some shifts:
| Segment | Q3 FY2025 (RM’000) | Q2 FY2025 (RM’000) | Change (%) |
|---|---|---|---|
| Property Development | 5,281 | 5,921 | -10.81% |
| Manufacturing | 4,577 | 4,254 | +7.59% |
| Hospitality Services | 1,567 | 835 | +87.66% |
| Others | 148 | 149 | -0.67% |
| Total | 11,573 | 11,159 | +3.71% |
While the Property segment’s contribution declined, robust growth in the Manufacturing and a significant surge in the Hospitality segment helped to boost overall group revenue for the quarter. The Property segment remains the largest contributor to cumulative revenue, followed by Manufacturing and Hospitality.
Strategic Outlook and Navigating the Future
ICONIC WORLDWIDE BERHAD is clearly focused on turning around its business performance. The Group’s strategy for the remainder of the financial year hinges on its core strengths and new initiatives:
- Property Development: This segment is expected to continue spearheading the Group’s financial performance, leveraging ongoing development projects.
- Manufacturing: The manufacturing segment is poised to provide crucial support, with contributions from its face mask and diaper products.
- Hospitality Services: The timely commencement of a residential property management based on a shared economy platform is anticipated to positively contribute to the Group’s financial performance.
The company aims to achieve a full business turnaround as soon as possible, indicating a proactive approach to optimize operations and capitalize on growth opportunities.
Material Litigations: Favorable Outcomes, Lingering Appeals
The report also sheds light on material litigations involving the Group’s subsidiary, Iconic Medicare Sdn Bhd (IMED). Notably, IMED secured favorable judgments in two significant cases:
- In the case against CeramTec Innovative Ceramic Engineering (M) Sdn Bhd (CICE), the High Court dismissed CICE’s claim and allowed IMED’s counterclaim for RM583,800. While IMED’s claim for loss of profit was dismissed, both parties have filed appeals, indicating the matter is not fully settled yet.
- In the case against Latex Form Sdn Bhd (LFSB), the High Court dismissed LFSB’s claim and allowed IMED’s counterclaim in part for RM10,115,000 to be paid to IMED. This is a substantial win for the Group.
These legal victories, particularly the significant sum awarded in the LFSB case, could provide a much-needed boost to the Group’s financial position once fully realized, though the ongoing appeals introduce some uncertainty.
Summary and
ICONIC WORLDWIDE BERHAD’s Q3 FY2025 report demonstrates a concerted effort to improve its financial standing. The significant reduction in quarterly losses and the positive cumulative profit for the nine-month period are encouraging signs. The strategic focus on property development, manufacturing, and the new hospitality venture, coupled with favorable outcomes in key litigations, paint a picture of a company actively working towards a stronger financial future.
However, it’s important for investors to consider the following key points:
- Sustained Profitability Challenge: Despite improvements in operational profit (PBIT), the Group still recorded a net loss for the quarter due to higher finance costs. This indicates a challenge in consistently translating operational gains into bottom-line profitability, which will require careful management of debt and financing facilities.
- Operational Cost Management: The increase in operating loss when compared to the immediately preceding quarter suggests that managing operational expenses effectively remains a critical area for improvement to ensure consistent quarter-on-quarter performance.
- Litigation Uncertainty: While recent court decisions have been largely favorable, the presence of ongoing appeals in material litigation cases means that the final impact of these legal battles on the Group’s financial results is not yet fully determined.
The company’s stated objective to achieve a business turnaround soonest possible reflects a clear strategic direction. Monitoring the execution of their strategies in property, manufacturing, and hospitality, alongside the resolution of legal matters, will be key to assessing their future performance.
What are your thoughts on ICONIC WORLDWIDE BERHAD’s latest quarter? Do you believe their focus on property and manufacturing, coupled with the new hospitality initiatives, will lead to sustained profitability in the coming quarters? Share your insights in the comments below!
