Key Financial Highlights: A Strong Quarter-on-Quarter Rebound

DutaLand Berhad demonstrated a significant turnaround in the third quarter of FY2025, primarily driven by its commodity trading division. Let’s look at the core numbers:

Quarterly Performance (3 Months Ended 31 March)

The company’s revenue surged by an impressive 372% quarter-on-quarter, from RM26.6 million in Q3 FY2024 to RM125.7 million in Q3 FY2025. This substantial increase was primarily attributed to the robust performance of the commodity trading segment. Furthermore, DutaLand successfully turned a loss before tax of RM0.6 million in the previous corresponding quarter into a profit before tax of RM0.7 million, showcasing a strong operational rebound.

Year-to-Date Performance (9 Months Ended 31 March)

For the nine-month period, revenue more than tripled, rising by 212% from RM106.6 million to RM332.5 million. While the company still recorded a year-to-date loss before tax of RM2.3 million, this represents a significant improvement of 42.5% compared to the RM4.0 million loss in the previous corresponding period. This reduction in losses was largely driven by a higher contribution from the property development division, particularly from an ongoing project in Seremban, despite an unrealised foreign exchange loss of RM4.95 million impacting the overall year-to-date profitability.

Segmental Performance: Commodity Trading Leads the Way

A closer look at the business segments reveals the primary drivers of DutaLand’s revenue surge:

The commodity trading segment was the standout performer, contributing RM287.7 million to year-to-date revenue, a remarkable increase from RM88.6 million in the prior period. While this segment drove revenue, the property development division played a crucial role in improving the group’s profit before tax, particularly in the current quarter, indicating successful project execution.

Financial Health and Cash Flow

DutaLand’s balance sheet remains solid, with total assets at RM1,281.9 million as of 31 March 2025. The company’s net assets per share remained stable at RM1.47. A notable improvement is seen in cash and cash equivalents, which significantly increased to RM93.6 million from RM64.9 million in the previous corresponding period. This was supported by strong cash flows from investing activities, which generated RM41.0 million year-to-date, up from RM24.3 million previously. The company also managed to reduce net cash used in operating and financing activities, reflecting better working capital management and reduced financing costs.

The report also detailed the utilisation of proceeds from the RM750 million disposal of a plantation asset. As of 16 May 2025, 99% of the funds allocated for new business/asset acquisitions and 100% for cash distribution to shareholders and disposal expenses have been utilised. This shows the company is actively deploying its capital for strategic growth and shareholder returns.

Navigating Risks and Charting Future Prospects

DutaLand acknowledges the current global market volatility, exacerbated by shifts in trade policies and new tariffs imposed by major economies. These factors contribute to uncertainties, potential supply chain disruptions, fluctuating costs, and changing consumer demands.

In response, the Group is proactively monitoring the evolving global situation, evaluating potential risks, and identifying opportunities. Their strategy emphasizes maintaining operational resilience, adapting to changing market conditions, and focusing on completing development projects on schedule. They also aim to strategically optimize the value of existing inventory and seize opportunities within their core business areas to ensure sustainable and strong cash flow.

Material Litigation Update

It’s also important to note the ongoing material litigation involving Rinota Construction Sdn Bhd. This is a long-running case concerning an alleged oppression and share buyout. The Federal Court had reinstated a High Court order for the respondents, including a DutaLand subsidiary, to purchase shares. The process of appointing auditors for share valuation and subsequent cross-examination of experts is still ongoing, with the latest update indicating further hearings scheduled. This complex legal matter continues to be a significant item to monitor.