Unpacking the Financial Performance

The Group’s financial performance for the third quarter of FY2025 reveals a mixed bag. While the year-to-date figures paint a picture of solid growth, the immediate quarter saw a notable dip in profitability. Understanding these nuances is key to assessing the company’s trajectory.

Overall Financial Highlights: Quarter-on-Quarter and Year-to-Date

Let’s begin with the top-line figures for the quarter and the cumulative nine-month period:

Revenue Performance

For the quarter, revenue saw a decrease of 19.13% compared to the same period last year. This was primarily attributed to lower contributions from both the Gas and Property Divisions.

However, looking at the nine-month period, the Group’s revenue increased by a robust 25.15%. This strong year-to-date performance was driven by improved sales in both the Gas and Property Divisions.

Profit Before Tax (PBT)

The quarter-on-quarter profit before tax saw a significant decline of 98.03%. This sharp decrease is largely explained by specific factors: repair costs for dissolved acetylene machinery and the absence of a one-off gain on property disposal (RM3.884 million) that boosted last year’s corresponding quarter.

For the nine-month period, PBT decreased by 28.98%, reflecting the impact of the aforementioned one-off gain from the previous year, which skews the comparison.

Segmental Performance Breakdown

A closer look at each business segment provides more clarity:

Gas Division

The Gas Division, a significant contributor to the Group, experienced varied performance:

• Q3 FY2025 Revenue: RM6.081 million, a 10.28% decrease from RM6.778 million in the preceding year’s corresponding quarter. This was attributed to festive holidays and lower sales across cylinder gas, liquefied gas, and other gases.
• YTD FY2025 Revenue: RM23.713 million, a strong 23.56% increase from RM19.191 million. This growth was primarily fueled by higher sales of liquefied and cylinder gases.
• Q3 FY2025 Profit/Loss Before Tax: Recorded a loss of RM0.390 million, a significant decline from a profit of RM4.509 million in the same quarter last year. The repair costs for dissolved acetylene machinery and the absence of last year’s one-off property disposal gain were key factors.
• YTD FY2025 Profit Before Tax: RM2.924 million, a 41.76% decrease from RM5.021 million, again reflecting the impact of the prior year’s exceptional gain.

Property Division

The Property Division showed resilience and growth in its year-to-date performance:

• Q3 FY2025 Revenue: RM0.706 million, a 56.26% decrease from RM1.614 million. This was likely due to the natural progression of property projects, with Phase II of the Suasana Melalin project nearing completion.
• YTD FY2025 Revenue: RM5.516 million, a healthy 32.47% increase from RM4.164 million.
• Q3 FY2025 Profit Before Tax: RM0.533 million, an impressive 59.10% increase from RM0.335 million.
• YTD FY2025 Profit Before Tax: RM1.414 million, a substantial 52.04% increase from RM0.930 million. The Property Division’s profitability is clearly on an upward trend for the nine-month period.

Discontinued Operations (Concrete Division)

The Concrete Division has ceased operations. For the current quarter, it reported a minimal profit before tax of RM0.007 million, a positive shift from a loss of RM0.230 million in the same quarter last year, reflecting the winding down process.

Financial Health Check: Balance Sheet and Cash Flow

The Group’s financial position as at 31 March 2025 shows a strengthening balance sheet:

The increase in total equity and net assets per share indicates an improvement in shareholder value. Cash and fixed deposits significantly increased to RM18.693 million from RM12.728 million at 30 June 2024, showing a robust cash position.

From a cash flow perspective, the Group generated a substantial RM10.241 million from operating activities for the nine-month period ended 31 March 2025, a significant improvement from RM2.341 million in the same period last year. This strong operational cash generation is a positive sign of the company’s underlying business health, despite the quarter’s profit dip.

Navigating Risks and Charting Prospects

B. I. G. INDUSTRIES BERHAD operates in an environment that is constantly evolving. The Group acknowledges the challenging and competitive business landscape, particularly with the recent proposed increase in US tariffs. While the immediate impact on the Group may not be direct, the potential ramifications of trade tariff implications on the broader operating environment remain a concern.

The company maintains a vigilant stance, actively monitoring developments to assess and mitigate potential risks to its businesses. Despite these external headwinds, the Group remains optimistic about the Malaysian economy’s projected positive growth in 2025 and the expectation of moderate inflation. This positive economic backdrop, coupled with the anticipated positive contribution from the Gas Division, provides a degree of confidence.

The Group’s strategy moving forward is to maintain a cautious, vigilant, and proactive approach, implementing appropriate measures to preserve profitability. This involves not only managing operational efficiencies but also adapting to market dynamics to ensure sustainable growth.