Mentiga Corporation Berhad (Q1 2025): A Deep Dive into Their Latest Financials
Greetings, fellow investors and market watchers! Today, we’re unpacking the latest financial report from Mentiga Corporation Berhad for the first quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, highlighting areas of significant growth alongside persistent challenges.
While the Group has seen a remarkable surge in revenue and a substantial reduction in losses compared to the same period last year, the quarter-on-quarter performance reveals a different picture. Despite these dynamics, the Board anticipates further improvements throughout the year. Let’s delve into the numbers and what they mean for Mentiga’s journey.
Key Financial Highlights: Strong Year-on-Year Improvement
Mentiga Corporation Berhad’s first quarter of 2025 demonstrates a strong recovery trend when compared to the corresponding period in the previous year. The Group’s strategic focus on its core businesses appears to be yielding positive results, particularly in the plantation segment.
Q1 2025 Performance
Revenue: RM6.81 million
Operating Profit: RM1.81 million
Loss Before Tax: RM2.75 million
Loss After Tax: RM2.81 million
Basic Loss Per Share: (3.92) sen
Q1 2024 Performance
Revenue: RM3.45 million
Operating Loss: RM1.28 million
Loss Before Tax: RM4.54 million
Loss After Tax: RM4.59 million
Basic Loss Per Share: (6.39) sen
The numbers speak volumes: revenue soared by an impressive 98% year-on-year, primarily driven by the robust performance of the oil palm segment. This significant top-line growth transitioned from an operating loss of RM1.28 million in Q1 2024 to an operating profit of RM1.81 million in Q1 2025. Consequently, the Group managed to reduce its loss before tax by 40% and loss after tax by 39% compared to the same period last year, indicating a positive trajectory towards profitability.
Segmental Breakdown: Plantation Leads the Way
Mentiga Corporation Berhad operates across three main business segments: Timber Products, Plantation (oil palm and durian), and Mining. The latest quarter’s results clearly show the Plantation segment as the dominant revenue driver.
| Segment (Q1 2025) | Revenue (RM’000) | Segment Result (RM’000) |
|---|---|---|
| Timber Products | – | – |
| Plantation | 6,523 | (1,314) |
| Mining | 287 | 154 |
| Investments & Others | – | (1,038) |
| Group Total | 6,810 | (2,198) |
The oil palm segment alone contributed RM6.32 million to the Group’s revenue, a substantial increase from RM2.96 million in the previous year. This uplift was largely due to a significant rise in Fresh Fruit Bunch (FFB) production, which increased to 6,132 MT from 3,578 MT, coupled with a higher average Crude Palm Oil (CPO) price of RM4,732 compared to RM3,987 previously. While the Plantation segment recorded a segment loss, its contribution to overall revenue growth is undeniable.
The Mining segment also showed positive results, contributing RM0.287 million in revenue and a profit of RM0.154 million. The Timber Products segment did not record any external sales or segment results for the period.
Quarter-on-Quarter Snapshot: A Different Perspective
While the year-on-year comparison paints a positive picture, it’s also insightful to look at the performance against the immediate preceding quarter (Q4 2024) to understand recent trends.
Q1 2025 Performance
Revenue: RM6.81 million
Operating Profit: RM1.81 million
Loss Before Tax: RM2.75 million
Loss After Tax: RM2.81 million
Q4 2024 Performance
Revenue: RM9.58 million
Operating Profit: RM3.69 million
Profit Before Tax: RM0.26 million
Profit After Tax: RM1.16 million
Compared to the immediate preceding quarter, Q1 2025 saw a decline in revenue by 29% and operating profit by 51%. The Group also swung from a profit before tax of RM0.26 million in Q4 2024 to a loss before tax of RM2.75 million in Q1 2025. This quarter-on-quarter dip could be attributed to various factors, including seasonal business cycles inherent in the plantation and mining industries, or specific operational challenges during the period.
Risks and Prospects: Navigating Challenges, Eyeing Growth
Mentiga Corporation Berhad acknowledges both opportunities and challenges ahead. The Group is optimistic about its prospects, particularly for its oil palm plantation business.
Prospects:
- The Group anticipates further improvement in revenue from its oil palm plantation in the financial year ending 2025, buoyed by factors like FFB production and CPO prices.
- Mining activities and lease rentals from durian and oil palm plantation joint venture projects are expected to continue contributing to revenue.
- The Board remains positive, expecting further overall improvement in the Group’s performance for the financial year ending 31 December 2025.
Challenges and Risks:
- Tight Cash Flow: The Group continues to face very tight cash flow, making it challenging to significantly reduce payables. This is a critical area that requires careful management to ensure financial stability.
- Pending Land Approvals: The status of the 830.29 acres of replacement land (Penor and Gambang) is still pending approvals from the Land Administrator, with no change since December 2023. This ongoing uncertainty could impact future development plans.
- Business Cyclicality: As businesses in oil palm plantation, timber, and mining, the Group is inherently subject to seasonal or cyclical factors, which can influence revenue and profitability fluctuations.
- Borrowings: Total borrowings slightly increased to RM33.66 million as at 31 March 2025, from RM32.85 million in Q1 2024, indicating a need for prudent debt management.
Summary and
Mentiga Corporation Berhad’s Q1 2025 report showcases a mixed but largely improving financial landscape. The significant year-on-year growth in revenue and reduction in losses, primarily driven by the plantation segment, is a positive indicator. The increase in FFB production and favorable CPO prices have been instrumental in this turnaround.
However, the quarter-on-quarter decline and the persistent challenge of tight cash flow and high payables highlight areas that require close monitoring. The Group’s ability to manage its liquidity and successfully navigate the approval process for its replacement land will be crucial for its long-term stability and growth.
Key points to consider:
- Strong year-on-year revenue growth, largely from the oil palm plantation segment.
- Transition from operating loss to operating profit compared to the previous year.
- Significant reduction in year-on-year net losses.
- Continued challenge of tight cash flow and difficulties in reducing payables.
- Unchanged status of the pending land approval, representing an ongoing corporate proposal.
- No interim dividend was recommended for this period.
As a reminder, this analysis is purely for informational purposes and should not be construed as investment advice. Investors should conduct their own thorough due diligence before making any investment decisions.
Mentiga Corporation Berhad has shown promising signs of recovery and growth in its core plantation business. The market will be keenly watching how the Group addresses its cash flow challenges and progresses with its strategic land matters. Do you think Mentiga can maintain this positive momentum throughout the rest of 2025, especially given the cyclical nature of its businesses?
Share your thoughts in the comments below!
