Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial performance of CARLO RINO GROUP BERHAD, a familiar name in the Malaysian retail landscape, as they unveil their unaudited condensed consolidated financial statements for the third quarter ended 31 March 2025. This report offers a fresh look at their operational strength and strategic direction, particularly as it marks their first interim financial report since listing.
The headline? Carlo Rino has demonstrated a commendable surge in performance this quarter, significantly boosting its revenue and profit before taxation. This positive momentum is further underscored by the Group’s consistent commitment to shareholder returns through dividend announcements.
Let’s peel back the layers of this report and see what’s truly driving Carlo Rino’s journey.
Q3 Performance: A Strong Surge
For the third quarter ended 31 March 2025, CARLO RINO GROUP BERHAD delivered a robust performance, showcasing significant growth compared to the immediate preceding quarter. This improvement is largely attributed to heightened consumer spending during the festive seasons, including Chinese New Year and Hari Raya Aidilfitri.
Current Quarter (31 March 2025)
- Revenue: RM32,483,000
- Gross Profit: RM20,617,000
- Profit Before Taxation (PBT): RM9,816,000
Immediate Preceding Quarter (31 December 2024)
- Revenue: RM26,593,000
- Gross Profit: RM16,840,000
- PBT: RM6,306,000
Comparing the current quarter to the immediate preceding quarter, revenue increased by RM5.89 million, representing a notable 22.15% jump. This strong top-line growth directly translated into a healthier bottom line, with Profit Before Taxation (PBT) rising by approximately RM3.51 million, a substantial 55.66% increase quarter-on-quarter.
Cumulative Performance and Key Contributors
Looking at the cumulative nine months ended 31 March 2025, the Group reported a total revenue of RM78.91 million. The retail segment remains the powerhouse, with the boutique distribution channel leading the charge.
| Distribution Channel | Revenue (9 months ended 31 March 2025) | Contribution (%) |
|---|---|---|
| Boutique | RM40,000,000 | 50.69% |
| Departmental Store | RM25,076,000 | 31.78% |
| E-commerce Platforms | RM13,804,000 | 17.49% |
| Others (e.g., staff sales) | RM28,000 | ~0.04% |
| Total | RM78,908,000 | 100% |
For the cumulative period, the Group achieved a gross profit of RM50.19 million, translating to a healthy gross profit margin of 63.60%. The cumulative PBT stood at RM19.32 million, which includes approximately RM0.99 million in one-off listing expenses, indicating a solid underlying operational profitability.
Strengthening Financial Position
Beyond the income statement, Carlo Rino’s balance sheet also reflects a stronger financial footing. As at 31 March 2025, the Group’s total assets grew to RM201.68 million from RM150.10 million as at 30 June 2024. This increase was significantly bolstered by a surge in cash and bank balances, which rose from RM46.96 million to a robust RM83.27 million. This substantial cash position provides the Group with significant liquidity and financial flexibility.
Total equity also saw a healthy increase, reaching RM164.07 million from RM111.68 million over the same period. This translates to a net assets per share of RM0.1678, up from RM0.1386, indicating improved shareholder value.
Navigating Challenges and Future Prospects
The Group acknowledges the ongoing challenges in the Malaysian retail landscape. Macroeconomic uncertainties, such as inflationary pressures and global trade tensions, continue to temper consumer sentiment and spending. However, Carlo Rino is not standing still.
The management is adopting a proactive approach, continuously refining its business strategies to adapt to these evolving market conditions. Their focus is on maintaining resilience and building sustainable competitive advantages. This includes enhancing their multi-channel distribution strategy, investing in IT infrastructure, and potentially expanding their physical footprint with a new flagship boutique, as outlined in their IPO proceeds utilization plan.
Returning Value to Shareholders: Dividends
Demonstrating its commitment to shareholders, Carlo Rino Group Berhad has declared and paid two interim single-tier dividends for the financial year ending 30 June 2025:
- First Interim Dividend: RM0.005 per ordinary share (approx. RM4.03 million), declared on 15 July 2024 and paid on 7 August 2024.
- Second Interim Dividend: RM0.005 per ordinary share (approx. RM4.89 million), declared on 24 February 2025 and paid on 26 March 2025.
These consistent dividend payouts reflect the Group’s healthy cash flow generation and its policy of returning value to its investors.
IPO Proceeds: Fueling Growth
The report also provides an update on the utilization of proceeds from the Company’s Initial Public Offering (IPO), which raised approximately RM46.40 million. As at 31 March 2025, a significant portion of these funds are still earmarked for strategic initiatives:
- Construction and fitting out of a flagship boutique and other facilities: RM14.92 million remaining (out of RM15 million)
- Refurbishment of boutiques and counters: RM3.32 million remaining (out of RM3.5 million)
- Maintenance of IT infrastructure: RM0.33 million remaining (out of RM0.5 million)
- Working capital: RM11.70 million remaining (out of RM23.204 million, with an additional RM0.45 million reallocated from listing expenses)
The remaining balance of RM30.27 million is set to be strategically deployed over the next 24-36 months, indicating future growth and operational enhancements are well-funded.
Summary and
CARLO RINO GROUP BERHAD’s third-quarter report for FY2025 paints a picture of a company with strong operational momentum, particularly driven by seasonal consumer spending. The significant quarter-on-quarter growth in revenue and profit, coupled with a robust cash position and consistent dividend payments, highlights the Group’s financial health and its ability to capitalize on market opportunities.
While the retail sector faces persistent macroeconomic headwinds, the Group’s proactive strategies to enhance business operations and maintain resilience are critical. The substantial remaining IPO proceeds also provide a clear roadmap for future investments in infrastructure and working capital, which are essential for long-term sustainability and competitive positioning.
Key points to consider from this report include:
- Macroeconomic Uncertainties: Inflationary pressures and trade tensions could continue to dampen consumer sentiment and spending, impacting the retail sector.
- Intense Competition: The retail landscape in Malaysia is highly competitive, requiring continuous innovation and strategic adaptation.
- Reliance on Consumer Confidence: The Group’s performance is closely tied to overall consumer confidence and discretionary spending, which can be volatile.
What are your thoughts on Carlo Rino’s latest performance? Do you believe their strategic investments and focus on key distribution channels will enable them to navigate the challenging retail environment effectively? Share your insights in the comments below!
