Navigating the Tides: LANDMARKS BERHAD’s Q1 2025 Performance Review
Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial report from LANDMARKS BERHAD for the first quarter ended 31 March 2025. As a prominent player in Malaysia’s leisure and property development sectors, their performance offers valuable insights into the broader economic landscape, particularly within the tourism and hospitality industry.
This report presents a mixed bag of results. While the company has shown commendable progress in narrowing its losses, it also grapples with a decline in revenue and significant cash flow challenges. Let’s unpack the numbers to understand what’s truly happening behind the scenes and what it means for LANDMARKS’ journey ahead.
Q1 2025 Highlights: A Glimmer of Improvement Amidst Challenges
LANDMARKS BERHAD’s Q1 2025 results indicate a concerted effort in cost management, leading to a reduced operating loss compared to the same period last year. However, revenue saw a dip, reflecting ongoing market dynamics.
Overall Financial Performance
Q1 2025
Revenue: RM4,468k
Operating Loss: RM(5,050)k
Loss Before Tax: RM(5,125)k
Loss for the Period: RM(5,309)k
Basic Loss Per Share: (0.79) sen
Q1 2024
Revenue: RM5,434k
Operating Loss: RM(6,104)k
Loss Before Tax: RM(6,228)k
Loss for the Period: RM(6,283)k
Basic Loss Per Share: (0.94) sen
While revenue for Q1 2025 decreased by approximately 18% to RM4.47 million from RM5.43 million in Q1 2024, the Group managed to significantly reduce its operating loss by 17%, moving from RM6.10 million to RM5.05 million. This improvement is primarily attributed to effective cost-cutting measures, including a reduction in staff costs by RM0.36 million and a decrease in depreciation and amortisation expenses by RM0.62 million.
The loss before tax also narrowed by 18%, from RM6.23 million in Q1 2024 to RM5.13 million in Q1 2025. Consequently, the basic loss per share improved to (0.79) sen from (0.94) sen in the prior year’s corresponding quarter, indicating a positive trend in controlling overall expenses.
Segmental Performance: A Closer Look
The report provides a detailed breakdown of how each business segment contributed to the overall performance:
| Segment | Q1 2025 Revenue (RM’000) | Q1 2024 Revenue (RM’000) | Q1 2025 Operating (Loss)/Profit (RM’000) | Q1 2024 Operating (Loss)/Profit (RM’000) |
|---|---|---|---|---|
| Hospitality and Wellness | 3,097 | 3,938 | (766) | 4,684 |
| Resort and Destination Development | 1,199 | 1,403 | (3,124) | (9,349) |
| Others | 172 | 93 | (1,160) | (1,439) |
The Hospitality and Wellness segment, while still the largest revenue contributor, saw its revenue decline and swung from a profit of RM4.68 million in Q1 2024 to a loss of RM0.77 million in Q1 2025. This shift warrants close monitoring, perhaps reflecting increased competition or lower occupancy rates in its Bintan operations.
Conversely, the Resort and Destination Development segment, despite a revenue decrease, significantly reduced its operating loss from RM9.35 million in Q1 2024 to RM3.12 million in Q1 2025. This substantial improvement highlights effective cost management within this segment.
The ‘Others’ segment also improved its operating loss while showing a revenue increase, contributing positively to the overall reduction in the Group’s operating loss.
Financial Health: A Look at the Balance Sheet and Cash Flow
While the income statement shows progress in loss reduction, the balance sheet and cash flow statements present a more cautious picture.
As at 31 March 2025
Total Assets: RM2,213,520k
Total Equity: RM1,833,497k
Net Assets Per Share: RM2.73
Cash and Cash Equivalents: RM14,344k
Net Cash Used in Operating Activities (Q1 2025): RM(9,436)k
Net Cash Used in Financing Activities (Q1 2025): RM(2,689)k
As at 31 December 2024 (Balance Sheet) / Q1 2024 (Cash Flow)
Total Assets: RM2,232,669k
Total Equity: RM1,843,613k
Net Assets Per Share: RM2.74
Cash and Cash Equivalents: RM26,505k
Net Cash Used in Operating Activities (Q1 2024): RM(516)k
Net Cash Used in Financing Activities (Q1 2024): RM(189)k
Total assets and equity saw a slight reduction from December 2024, reflecting the period’s losses. More notably, cash and cash equivalents significantly decreased from RM26.51 million at the end of 2024 to RM14.34 million by March 31, 2025. This substantial drop is largely due to the increased cash outflow from both operating and financing activities.
Net cash used in operating activities surged to RM9.44 million in Q1 2025, a stark contrast to RM0.52 million in Q1 2024. This indicates a higher burn rate from core operations. Furthermore, net cash used in financing activities also increased substantially to RM2.69 million, primarily driven by a repayment to a Director. These cash flow trends highlight a need for robust cash management and potential for future capital needs if current trends persist.
Risks and Prospects: Charting the Future
LANDMARKS BERHAD acknowledges the challenges but also outlines strategic initiatives for future growth.
Strategic Outlook
The company is optimistic about the prospects in Bintan island, where its ANMON hotel is located. The recent opening of three new international-class hotels in Bintan is seen as a positive development, raising the island’s profile as a tourist destination. LANDMARKS aims to capitalize on this by:
- Tapping into Indonesia’s corporate groups for company events and staff incentive trips.
- Expanding marketing efforts to target regional travelers from India and China, positioning Bintan as a resort-style and family-oriented destination.
- Enhancing guest experience by bundling new attractions offerings with hotel stays to promote longer lengths of stay.
These strategies are crucial for bolstering the Hospitality and Wellness segment’s performance and leveraging the Group’s assets in Bintan.
Key Corporate Priority: Regularizing Listed Issuer Status
A significant point highlighted in the report is the Group’s active evaluation of viable strategies to regularize its “affected listed issuer status.” This is a key corporate priority. For retail investors, this means the company needs to address specific financial or operational criteria set by the stock exchange to avoid potential delisting. This process often involves submitting a regularization plan, and its successful execution is vital for the company’s long-term standing on the exchange.
Summary and Outlook
LANDMARKS BERHAD’s Q1 2025 report showcases a diligent effort in cost control, successfully narrowing its operating and pre-tax losses. This is a positive step towards profitability, demonstrating management’s commitment to efficiency. The strategic focus on leveraging Bintan’s growing tourism appeal and diversifying its market reach is commendable and could pave the way for future revenue growth, especially for its hotel and attraction offerings.
However, the decline in overall revenue and, more critically, the significant increase in cash used for operations and financing, present areas that warrant close attention. Maintaining healthy cash reserves is paramount for any business, especially one in the development and hospitality sectors. Furthermore, the ongoing efforts to regularize its listed issuer status remain a critical factor for investor confidence and the company’s future on the stock exchange.
The Group’s ability to execute its Bintan strategies effectively and manage its cash flow will be key determinants of its performance in the coming quarters. While the cost-cutting measures are a good start, sustainable revenue growth will be essential for a full turnaround.
Key points to monitor going forward:
- The effectiveness of new marketing initiatives in Bintan to attract international and corporate visitors.
- The trend in cash flow from operations and financing activities.
- Progress and updates regarding the regularization of the company’s affected listed issuer status.
- The performance of the Hospitality and Wellness segment, particularly its ability to return to profitability.
Final Thoughts: What’s Next for LANDMARKS?
LANDMARKS BERHAD is clearly at a pivotal juncture. The management’s focus on cost reduction is paying off in terms of narrower losses, but the challenge now shifts to reigniting revenue growth and ensuring financial stability through prudent cash management. The developments in Bintan offer a promising avenue, but competition is also intensifying.
Do you think LANDMARKS BERHAD can maintain this momentum of loss reduction while simultaneously boosting its revenue in a competitive tourism landscape? Share your thoughts in the comments below! Your insights are always valuable.
Stay tuned for more financial report analyses and market insights on our blog.
