Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial performance of Land & General Berhad (L&G) for its unaudited financial year ended 31 March 2025. This report paints a compelling picture of robust growth, significant operational improvements, and a promising outlook, all while navigating a dynamic economic landscape. Get ready to uncover the numbers that matter and understand the strategic moves behind L&G’s journey of “Building Value for Tomorrow.”
The headline figures are certainly attention-grabbing: a substantial increase in both revenue and profit before tax for the full financial year. What’s more, the Board of Directors has proposed a final dividend, signaling confidence in the company’s performance and commitment to shareholder returns. Let’s break down the key highlights.
Full-Year Performance: A Resounding Success
L&G has delivered an impressive financial year, demonstrating strong top-line and bottom-line growth. The full-year results reflect the success of strategic initiatives and resilient business operations.
FY Ended 31 March 2025
Revenue: RM287.6 million
Profit Before Tax: RM59.1 million
Net Profit Attributable to Owners: RM36.4 million
Basic Earnings Per Share: 1.22 sen
FY Ended 31 March 2024
Revenue: RM216.6 million
Profit Before Tax: RM30.8 million
Net Profit Attributable to Owners: RM23.2 million
Basic Earnings Per Share: 0.78 sen
For the financial year ended 31 March 2025, L&G recorded a revenue of RM287.6 million, marking a significant 32.8% increase compared to the preceding financial year. This strong revenue growth translated into an even more impressive surge in profitability, with profit before tax soaring by 92.1% to RM59.1 million. The net profit attributable to owners also saw a healthy rise to RM36.4 million, leading to a basic earnings per share of 1.22 sen, up from 0.78 sen last year.
Key Driver: The substantial improvement in both revenue and operating profit for the full year was primarily fueled by the Property division, notably from the disposal of land in Senawang and higher revenue recognition from key projects like Livista, Kamelia, and Wyn Residence. The Education division also contributed positively with increased student enrollment and higher fees.
Fourth Quarter Snapshot: Strong Momentum
The final quarter of the financial year demonstrated L&G’s accelerating momentum, with stellar performance across its core divisions.
4th Quarter Ended 31 March 2025
Revenue: RM143.4 million
Profit Before Tax: RM43.6 million
Net Profit Attributable to Owners: RM26.4 million
Basic Earnings Per Share: 0.89 sen
4th Quarter Ended 31 March 2024
Revenue: RM48.9 million
Profit Before Tax: (RM4.1 million)
Net Profit Attributable to Owners: (RM2.9 million)
Basic Earnings Per Share: (0.10 sen)
For the fourth quarter alone, L&G’s revenue surged by an astounding 193% to RM143.4 million, compared to RM48.9 million in the corresponding quarter of the previous year. This impressive revenue jump transformed a pre-tax loss of RM4.1 million in 4Q FY2024 into a significant pre-tax profit of RM43.6 million for 4Q FY2025. Similarly, the Group recorded a net profit attributable to owners of RM26.4 million, an impressive turnaround from a loss of RM2.9 million in the prior year’s fourth quarter.
Quarterly Boost: The disposal of land in Senawang was a major contributor to the higher revenue and operating profit in the fourth quarter. Coupled with strong revenue recognition from property projects like Livista, Kamelia, and Wyn Residence, and improved performance from the Education division due to higher fees and student enrollment, the quarter’s results were exceptionally strong.
Segmental Deep Dive: Where the Growth Comes From
Understanding the performance of each business unit provides clarity on L&G’s operational strengths:
| Division | FY2025 Revenue (RM’000) | FY2024 Revenue (RM’000) | FY2025 Operating Profit (RM’000) | FY2024 Operating Profit (RM’000) |
|---|---|---|---|---|
| Property | 240,472 | 176,770 | 62,151 | 42,450 |
| Education | 40,538 | 34,548 | 16,000 | 12,469 |
| Others | 6,568 | 5,313 | (8,071) | (7,322) |
- Property Division: This segment remains the primary revenue and profit driver, with revenue increasing to RM240.5 million and operating profit to RM62.2 million for the full year. The disposal of land in Senawang was a key factor, alongside continued progress and revenue recognition from ongoing residential projects.
- Education Division: The education arm also saw healthy growth, with full-year revenue reaching RM40.5 million and operating profit hitting RM16.0 million. This was largely attributed to increased school fees and a rise in student enrollment at its private and international schools.
- Other Divisions: While contributing a smaller portion of revenue (RM6.6 million), this segment recorded an operating loss of RM8.1 million, primarily due to an increase in administrative overheads.
It’s also worth noting the positive impact of fair value changes (a gain of RM6.85 million for the year) and a share of profit from joint ventures (RM2.67 million), which helped offset finance costs and a share of loss from an associate (due to impairment of land asset) in the overall profit before tax calculation.
Financial Health: A Snapshot
L&G’s financial position remains sound. As of 31 March 2025, total assets stood at RM1.74 billion, slightly up from RM1.70 billion in the previous year. Total equity attributable to owners of the company increased to RM1.15 billion, reflecting the year’s profitability. The Group’s total liabilities were RM503.5 million.
A significant highlight is the unbilled sales figure, which stands at a robust RM555.6 million as of 31 March 2025. This provides strong visibility for future revenue recognition in the coming years, underpinning the company’s stability.
However, it’s important to observe the shift in cash flow from operating activities: a net cash *outflow* of RM28.9 million for FY2025, compared to a net *inflow* of RM117.9 million in FY2024. Despite this, the overall cash and bank balances increased to RM52.9 million, thanks to strategic withdrawals from short-term funds and drawdown of bank borrowings, indicating active liquidity management.
Future Prospects and Navigating the Headwinds
Despite the strong performance, L&G acknowledges the broader economic climate. Bank Negara Malaysia (BNM) anticipates a slightly lower GDP growth for Malaysia in 2025 than initially forecasted, with global trade tensions and policy uncertainties posing potential challenges. The International Monetary Fund (IMF) and Socio-Economic Research Centre (SERC) have also revised their forecasts downwards.
However, L&G remains optimistic about its prospects. The company anticipates continued support from domestic consumer spending, bolstered by government policies such as increased minimum wages and targeted subsidies. The encouraging take-up rates for its key property projects – The Wyn Residences, Residensi Kamelia, and Livista – are expected to continue contributing positively to the Group’s results. The substantial unbilled sales pipeline further strengthens this outlook.
L&G’s strategy moving forward involves maintaining disciplined financial management and stringent cost control, alongside efforts to monetize its existing inventories. This proactive approach aims to ensure resilience amidst external uncertainties and capitalize on domestic opportunities.
Shareholder Returns: A Proposed Dividend
In a positive move for shareholders, the Board of Directors is pleased to recommend a final single-tier dividend of 0.8 sen per ordinary share for the financial year ended 31 March 2025. This is an increase from the 0.7 sen per ordinary share paid for the previous financial year, reflecting the Group’s improved profitability and commitment to returning value to its investors.
Summary and
Land & General Berhad’s latest financial report showcases a commendable performance for the financial year ended 31 March 2025, marked by significant revenue and profit growth. The Property division, bolstered by strategic land disposals and strong project sales, along with a thriving Education division, have been the primary catalysts for this success. The increase in dividend payout further underscores the company’s financial health and confidence. While the macroeconomic environment presents its set of challenges, L&G’s substantial unbilled sales and commitment to prudent financial management position it to navigate these headwinds effectively.
However, it’s prudent to consider the ongoing factors that could influence future performance:
- Potential slowdown in Malaysia’s GDP growth due to global trade tensions and policy uncertainties.
- The impact of administrative overheads on the ‘Other divisions’ operating loss.
- The share of loss from an associate, primarily due to land asset impairment, which has impacted overall profitability.
- The shift to a net cash outflow from operating activities, requiring careful monitoring of liquidity management.
In my view, L&G has demonstrated strong operational execution in a challenging environment, leveraging its core strengths in property development and education. The significant unbilled sales provide a solid foundation for future revenue, and the increased dividend proposal is a clear positive signal. However, investors should keep an eye on the broader economic trends and how the company manages its cash flow from operations going forward.
What are your thoughts on L&G’s performance? Do you believe the company can maintain this growth momentum in the coming years, especially with the unbilled sales acting as a buffer? Share your views in the comment section below!
