Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial performance of **Supreme Consolidated Resources BHD (SCRB)**, a familiar name in Malaysia’s food and beverage distribution sector. The company has just unveiled its unaudited interim financial report for the second quarter ended 31 March 2025, and there’s certainly a lot to unpack.
From the outset, SCRB’s report paints a picture of robust growth, fueled by strong festive sales. Not only has the company reported a healthy increase in both revenue and profit, but it has also announced an interim dividend, signaling confidence in its financial health and a commitment to shareholder returns. Let’s break down the numbers and see what’s driving this positive momentum and what lies ahead for SCRB.
Q2 FY2025 Performance: A Closer Look
Supreme Consolidated Resources BHD has delivered a commendable performance for the second quarter of the financial year ending 30 September 2025. The figures demonstrate strong top-line and bottom-line growth, primarily driven by improved sales during the festive season.
Individual Quarter (3 months ended 31 March 2025 vs 31 March 2024)
The latest quarter saw significant improvements across key financial metrics:
Q2 FY2025
- Revenue: RM67,020,000
- Gross Profit: RM8,287,000
- Profit After Tax: RM3,136,000
- Basic Earnings per Share: 0.74 sen
Q2 FY2024
- Revenue: RM59,817,000
- Gross Profit: RM7,394,000
- Profit After Tax: RM2,745,000
- Basic Earnings per Share: 1.96 sen
Revenue surged by 12.0%, reaching RM67.02 million, largely due to better festive sales, particularly from frozen and chilled food products, which contributed an additional RM10.1 million in sales. This top-line growth naturally flowed down to profitability, with Gross Profit increasing by 12.1% to RM8.29 million, and Profit After Tax seeing a healthy 14.3% jump to RM3.14 million.
It’s important to note the change in Basic Earnings per Share (EPS). While the current quarter’s EPS is 0.74 sen compared to 1.96 sen in the corresponding period last year, this is primarily due to the significantly enlarged weighted average number of ordinary shares in issue (424,166,667 shares in FY2025 vs 140,000,000 shares in FY2024) following the bonus issue and initial public offering (IPO). When viewed in absolute profit terms, the company’s profitability has clearly improved.
Cumulative Quarter (6 months ended 31 March 2025 vs 31 March 2024)
The positive trend extends to the cumulative six-month period:
6M FY2025
- Revenue: RM123,184,000
- Gross Profit: RM15,345,000
- Profit After Tax: RM5,503,000
- Basic Earnings per Share: 1.30 sen
6M FY2024
- Revenue: RM111,627,000
- Gross Profit: RM13,677,000
- Profit After Tax: RM4,754,000
- Basic Earnings per Share: 3.40 sen
For the first six months, revenue grew by 10.4% to RM123.18 million, and Profit After Tax increased by 15.8% to RM5.50 million. The gross profit margin also saw a slight improvement from 12.25% to 12.46%, indicating better efficiency in managing costs relative to sales.
Quarter-on-Quarter (Q2 FY2025 vs Q1 FY2025)
Comparing the current quarter with the immediate preceding quarter (Q1 FY2025) further highlights the strong momentum:
Q2 FY2025
- Revenue: RM67,020,000
- Gross Profit: RM8,287,000
- Profit After Tax: RM3,136,000
Q1 FY2025
- Revenue: RM56,164,000
- Gross Profit: RM7,058,000
- Profit After Tax: RM2,366,000
Revenue jumped by 19.3% from Q1, and Profit After Tax soared by 32.5%, largely attributed to the strong festive sales. While frozen and chilled products were the main drivers, ambient sales saw a decrease due to shipment delays, suggesting an area for future operational focus.
Business Segment Performance
The report provides a clear breakdown of revenue contributions by business segment:
| Business Segment | 3 Months Ended 31.03.2025 (RM’000) | 3 Months Ended 31.03.2024 (RM’000) |
|---|---|---|
| Frozen & Chilled F&B | 64,452 | 54,277 |
| Ambient F&B | 2,554 | 5,515 |
| Non-F&B | 14 | 24 |
| Total Revenue | 67,020 | 59,817 |
The **Frozen & Chilled F&B** segment was the star performer, showing significant growth and underlining its importance to the Group’s overall revenue. The decline in Ambient F&B revenue due to shipment delays indicates that while the core business is strong, supply chain management remains a factor to monitor.
Financial Health: Balance Sheet and Cash Flow
SCRB’s financial position as at 31 March 2025 also reflects healthy growth:
Total Assets increased to RM161.72 million from RM137.86 million as at 30 September 2024, indicating expansion and asset accumulation.
Total Equity saw a substantial rise to RM114.29 million from RM93.11 million, bolstered by retained profits and the recent issuance of shares. This growth in equity is a positive sign of strengthening financial base.
Net Assets per ordinary share stood at RM0.27 as at 31 March 2025, up from RM0.26 as at 30 September 2024. Similar to EPS, this is calculated on an enlarged share base (430,000,000 shares in 2025 vs 360,000,000 shares in 2024 after the bonus issue but before IPO for the comparative period).
From a cash flow perspective, the Group’s operating activities showed a significant improvement. Net cash used in operating activities reduced drastically to RM93,000 for the six months ended 31 March 2025, a remarkable improvement from RM8.33 million used in the same period last year. This indicates much better operational efficiency in generating cash. The higher net cash used in investing activities (RM16.22 million vs RM1.83 million last year) was mainly due to increased purchases of short-term investments, reflecting strategic allocation of capital.
Prospects and Strategies Ahead
The Group remains optimistic about its prospects for the current financial year. Their strategy focuses on several key areas:
- **Business Expansion:** Continuing to explore new business opportunities with existing and potential customers.
- **Distribution Strengthening:** Enhancing their regional distribution network.
- **Product Range Expansion:** Aligning product offerings with evolving consumer needs.
- **Agency Portfolio Enhancement:** Actively acquiring new agencies to diversify and strengthen their brand portfolio.
These initiatives suggest a proactive approach to growth and market penetration. The company’s effective tax rate for the quarter was higher than the statutory rate of 24%, mainly due to non-deductible expenses, a common factor for many businesses. Furthermore, the company has clearly outlined the utilization of its RM17.50 million IPO proceeds, with RM11 million earmarked for warehouse expansion over the next 36 months, and RM4 million for working capital, which has already been fully utilized.
Shareholder Returns: A Dividend Announcement
In a positive move for shareholders, the Directors have approved a first interim single tier dividend of **RM0.0035 per ordinary share**, amounting to RM1,505,000 for the financial year ending 2025. The entitlement date is set for 16 June 2025, with payment on 30 June 2025. This dividend announcement reflects the company’s confidence in its ongoing performance and its commitment to returning value to its investors.
Summary and
Supreme Consolidated Resources BHD has delivered a strong second-quarter performance, showcasing impressive growth in revenue and profit, largely driven by strategic sales during the festive period. The company’s improved operational cash flow and commitment to expanding its product range and distribution network paint a positive picture for its future trajectory.
The announced dividend is a clear signal of financial stability and a shareholder-friendly approach. While the effective tax rate was higher due to non-deductible expenses, the overall financial health appears robust, with growing assets and equity.
For investors, SCRB’s report highlights a company in a growth phase, actively pursuing expansion and market diversification. The focus on strengthening its core frozen and chilled F&B segment, coupled with strategic investments, positions it well for continued progress.
Here are some key factors to monitor as SCRB moves forward:
- **Sustaining Growth Momentum:** How will the company maintain its sales momentum outside of peak festive seasons?
- **Operational Efficiency:** The impact of managing the effective tax rate and optimizing supply chains for ambient sales.
- **Execution of Expansion Plans:** The successful implementation of warehouse expansion and new agency acquisitions will be crucial for long-term growth.
What are your thoughts on Supreme Consolidated Resources BHD’s latest performance? Do you think the company can maintain this impressive growth momentum in the coming quarters? Share your insights in the comments below!
