Greetings, fellow investors and market enthusiasts! Today, we’re diving deep into the latest financial report from AYS Ventures Berhad for its fourth quarter and full financial year ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, revealing a mixed bag of results that warrant our attention. While the company saw a commendable increase in revenue for both the quarter and the full year, it grappled with a full-year net loss. On a positive note, AYS Ventures has announced a dividend payment, reflecting its commitment to shareholder returns amidst challenging times. Let’s unpack the numbers together to understand what’s truly going on behind the scenes.
Q4 and Full-Year Performance Snapshot
AYS Ventures Berhad’s latest financial statements present a picture of resilience in revenue generation, but also highlight profitability pressures. Here’s a breakdown of the key figures:
Fourth Quarter Performance (Q4 FY2025 vs Q4 FY2024)
The final quarter of the financial year saw AYS Ventures achieve a notable increase in revenue, signaling strong sales activity. However, this growth did not translate into improved quarterly profits.
Q4 FY2025
Revenue: RM325.57 million
Profit Before Tax: RM4.87 million
Profit for the Period: RM4.14 million
Profit Attributable to Owners: RM6.22 million
Basic Earnings Per Share: 1.49 sen
Q4 FY2024
Revenue: RM293.71 million
Profit Before Tax: RM9.15 million
Profit for the Period: RM7.33 million
Profit Attributable to Owners: RM5.16 million
Basic Earnings Per Share: 1.23 sen
Revenue for the fourth quarter climbed by approximately 10.85% to RM325.57 million from RM293.71 million in the same period last year. Despite this top-line growth, profit before tax saw a significant dip of about 46.77%, falling to RM4.87 million from RM9.15 million. Consequently, profit for the period also decreased by 43.54% to RM4.14 million. Interestingly, profit attributable to owners of the parent increased by 20.35% to RM6.22 million, leading to a higher basic earnings per share of 1.49 sen, compared to 1.23 sen last year. This divergence suggests that while overall profitability faced headwinds, the portion directly benefiting shareholders improved in the quarter.
Full Financial Year Performance (FY2025 vs FY2024)
Looking at the full year, AYS Ventures maintained its revenue momentum, but the bottom line faced considerable pressure, resulting in a net loss for the year.
FY2025
Revenue: RM1,321.44 million
Profit Before Tax: (RM11.49 million)
Profit for the Period: (RM12.89 million)
Profit Attributable to Owners: (RM4.50 million)
Basic Earnings Per Share: (1.08) sen
FY2024
Revenue: RM1,289.24 million
Profit Before Tax: RM26.96 million
Profit for the Period: RM20.84 million
Profit Attributable to Owners: RM18.80 million
Basic Earnings Per Share: 4.49 sen
For the full financial year, revenue increased by 2.49% to RM1,321.44 million. However, the company swung from a profit before tax of RM26.96 million in FY2024 to a loss before tax of RM11.49 million in FY2025. This led to a net loss for the period of RM12.89 million, a stark contrast to the RM20.84 million profit reported last year. Similarly, profit attributable to owners of the parent turned into a loss of RM4.50 million from a profit of RM18.80 million, resulting in a basic loss per share of 1.08 sen for the year.
Financial Health and Cash Flow
A look at the balance sheet and cash flow statements provides further insights into the company’s financial standing.
While total assets grew, a decrease in equity and an increase in liabilities indicate shifts in the company’s financial structure. However, a significant improvement in operating cash flow is a positive sign.
As at 31 March 2025
Total Assets: RM1,176.33 million
Total Equity: RM461.62 million
Total Liabilities: RM714.72 million
Net Assets Per Share: RM1.07
Cash & Bank Balances: RM55.79 million
Payables: RM273.35 million
Net Cash from Operations (FY): RM87.25 million
Dividend Paid (FY): RM6.28 million
As at 31 March 2024
Total Assets: RM1,113.58 million
Total Equity: RM482.50 million
Total Liabilities: RM631.08 million
Net Assets Per Share: RM1.10
Cash & Bank Balances: RM24.66 million
Payables: RM147.87 million
Net Cash from Operations (FY): RM14.57 million
Dividend Paid (FY): RM4.19 million
Total assets increased by 5.64% to RM1,176.33 million, while total equity decreased by 4.33% to RM461.62 million. This shift is reflected in the net assets per share, which slightly declined to RM1.07 from RM1.10. Total liabilities surged by 13.25% to RM714.72 million, primarily driven by a substantial increase in payables by 84.86% to RM273.35 million. This could indicate extended credit terms from suppliers or a build-up of operational liabilities.
On the cash flow front, AYS Ventures showed a remarkable improvement in net cash generated from operating activities, which soared to RM87.25 million for the full year, a significant increase from RM14.57 million last year. This strong operational cash generation is a positive indicator of the company’s core business efficiency. Cash and bank balances also more than doubled to RM55.79 million. However, net cash used in financing activities increased to RM48.44 million, mainly due to higher dividend payments (RM6.28 million vs RM4.19 million) and net repayment of borrowings.
Risks and Prospects Ahead
The full-year loss for AYS Ventures Berhad, despite revenue growth, highlights the challenges the company faced in managing costs and profitability in the past year. This could be indicative of a competitive market environment, rising operational expenses, or pricing pressures within its industry. The substantial increase in payables also warrants attention, as it could impact future liquidity if not managed effectively.
Looking ahead, AYS Ventures will likely focus on strategies to improve its profit margins and return to profitability. This could involve stringent cost management, optimizing operational efficiencies, and exploring higher-margin product lines or services. The strong operating cash flow generated in FY2025 provides a solid foundation for the company to navigate these challenges and invest in strategic initiatives. The continued dividend payment, even in a year of net loss, might signal management’s confidence in the company’s underlying cash generation ability and its commitment to shareholders.
Summary and Outlook
Summary and
AYS Ventures Berhad’s latest report presents a mixed financial landscape. While the company demonstrated resilience in revenue growth for both the quarter and the full financial year, the significant full-year net loss underscores the profitability challenges it faced. The increase in operational cash flow and the continued dividend payment are positive aspects, suggesting underlying operational strength and a commitment to shareholder returns.
However, the shift to a full-year loss and the substantial increase in liabilities, particularly payables, are areas that warrant careful monitoring by investors. The company’s ability to convert its revenue growth into sustainable profits and manage its liabilities will be key determinants of its future performance.
Key points from the report:
- Q4 FY2025 revenue increased by 10.85%, but quarterly profit before tax decreased by 46.77%.
- Full-year FY2025 revenue grew by 2.49%, but the company incurred a net loss of RM12.89 million, compared to a profit of RM20.84 million in FY2024.
- Net cash generated from operations for FY2025 significantly improved to RM87.25 million from RM14.57 million in FY2024.
- Total liabilities increased by 13.25%, with payables surging by 84.86%.
- The company declared a dividend payment, demonstrating a commitment to shareholder returns.
As AYS Ventures navigates the evolving market conditions, its focus on operational efficiency and strategic management of its financial position will be crucial. The strong operating cash flow is a vital asset that can be leveraged to overcome current profitability hurdles and drive future growth.
What are your thoughts on AYS Ventures Berhad’s latest performance? Do you believe the company can maintain its revenue growth while addressing the profitability challenges in the coming quarters? Share your perspectives in the comments section below!
