Core Data Highlights: A Remarkable Turnaround

CYL Corporation Berhad’s first quarter results paint a vivid picture of operational efficiency and market responsiveness. The company has not only boosted its top-line revenue but also achieved a dramatic improvement in its bottom line.

Quarterly Performance Snapshot (Q1 FY2025 vs Q1 FY2024)

Comparing the current quarter with the same period last year reveals impressive growth:

This translates to a 15.79% increase in revenue and an astounding 2065.38% surge in profit before tax, moving from a loss-making position to a significant profit. This robust performance is primarily attributed to two key factors: an increase in sales volume and a welcome decrease in input costs, particularly resin costs, which are crucial for a plastic packaging manufacturer.

Sequential Quarter Performance (Q1 FY2025 vs Q4 FY2024)

The positive momentum also extends to a sequential comparison with the immediate preceding quarter (Q4 FY2024):

Here, we see a 16.90% increase in revenue and a remarkable 479.46% improvement in profit before tax. This consistent upward trend underscores the effectiveness of the company’s operational adjustments and market strategies.

Summary of Key Financial Performance

Financial Health: A Stable Foundation

Beyond the profit and loss statement, the balance sheet and cash flow statement provide insights into the company’s financial stability. As of 30 April 2025, CYL Corporation Berhad’s total assets stood at RM129.48 million, a slight increase from RM128.99 million at the end of the previous financial year (31 January 2025). Shareholders’ equity also saw a healthy rise to RM112.38 million from RM110.85 million, indicating a strengthening financial position.

The company maintains a strong liquidity profile. Current assets increased to RM22.18 million from RM21.20 million, while current liabilities decreased to RM5.04 million from RM6.06 million, indicating improved working capital management. Net cash generated from operating activities was RM728,000 for the quarter, demonstrating the company’s ability to generate cash from its core operations. Although this is lower than the previous quarter, it’s still positive, and the company used significantly less cash in investing activities compared to the prior period, reflecting a more focused approach to capital expenditure.

Navigating Risks and Charting Future Prospects

While the latest results are undoubtedly positive, the management acknowledges the competitive and challenging business environment that lies ahead. Several factors could impact the company’s margins:

• Cost Push Inflation: The potential reduction or removal of fuel and electricity tariff subsidies could lead to higher operating costs.
• Wage Increases: The recent increase in the Minimum Wage Order from RM1,500 to RM1,700 will directly impact employee benefit expenses, a significant cost driver.

These inflationary pressures could lead to margin erosion. However, the company is not standing still. The Board is committed to proactive measures, focusing on:

• Maintaining Liquidity: Ensuring sufficient cash flow to meet all financial obligations.
• Prudent Capital Expenditure: Monitoring and managing capital investments based on necessity to optimize resource allocation.
• Enhancing Productivity and Efficiency: Implementing strategies to streamline operations and improve output, thereby mitigating the impact of rising costs.

These strategies are crucial for ensuring the company’s continued performance improvement and sustainable growth in a dynamic market.

Shareholder Returns: A Consistent Dividend

For shareholders, there’s good news on the dividend front. An interim tax-exempt dividend of 0.50 sen per ordinary share, amounting to RM500,000, has been declared for the financial year ending 31 January 2026. This dividend is scheduled to be paid on 23rd July 2025 to shareholders on record as of 14th July 2025. This consistent return to shareholders reflects the company’s commitment to delivering value.