FITTERS DIVERSIFIED BERHAD: A Look into Their Latest Quarterly Performance
Hello fellow Malaysian retail investors! Today, we’re diving deep into the latest financial report from FITTERS DIVERSIFIED BERHAD for the period ended 31 March 2025. This report offers a fascinating glimpse into the company’s journey, revealing significant revenue growth and a notable turnaround in year-to-date profitability, even as it navigates a dynamic market landscape. Let’s break down the numbers and understand what’s driving their performance and what lies ahead.
Core Financial Highlights: A Quarter of Mixed Fortunes, A Year of Strong Recovery
FITTERS DIVERSIFIED BERHAD has released its unaudited consolidated results, showcasing a robust increase in revenue for both the latest quarter and the cumulative financial period. While the fourth quarter saw a slight loss before tax, the cumulative results paint a picture of a significant rebound into profitability.
Overall Group Performance (Q4 2025 vs Q4 2024)
Current Quarter (31-Mar-2025)
Revenue: RM98,481,000
(Loss)/Profit Before Tax: (RM2,932,000)
(Loss)/Profit After Tax: (RM2,801,000)
(Loss)/Profit for the financial period: (RM3,339,000)
Basic (Loss)/Earnings Per Share: (0.14 sen)
Preceding Year Corresponding Quarter (31-Mar-2024)
Revenue: RM73,802,000
(Loss)/Profit Before Tax: (RM13,590,000)
(Loss)/Profit After Tax: (RM13,866,000)
(Loss)/Profit for the financial period: (RM13,842,000)
Basic (Loss)/Earnings Per Share: (0.59 sen)
For the quarter ended 31 March 2025, the Group’s revenue surged by 33.4% to RM98.5 million compared to RM73.8 million in the corresponding quarter of the previous year. Although the Group recorded a loss before tax of RM2.9 million, this is a substantial improvement from the RM13.6 million loss reported in the same period last year. This positive shift is largely attributed to higher sales volumes of crude palm oil (CPO) and palm kernel (PK), supported by increased fresh fruit bunch (FFB) intake.
Overall Group Performance (Cumulative 12 Months 2025 vs 2024)
Current Year to Date (31-Mar-2025)
Revenue: RM399,661,000
Profit Before Tax: RM2,831,000
Profit After Tax: RM1,294,000
Profit for the financial period: RM1,320,000
Basic Earnings Per Share: 0.06 sen
Preceding Year Corresponding Period (31-Mar-2024)
Revenue: RM280,095,000
Loss Before Tax: (RM11,190,000)
Loss After Tax: (RM12,784,000)
Loss for the financial period: (RM16,424,000)
Basic (Loss)/Earnings Per Share: (0.70 sen)
For the cumulative 12 months, the Group’s revenue soared by 42.7% to RM399.7 million from RM280.1 million in the previous corresponding period. More impressively, the Group swung into a profit before tax of RM2.8 million, a significant turnaround from the RM11.2 million loss in the prior year. This turnaround is particularly noteworthy, as the previous year’s loss included a substantial provision for expected credit loss amounting to RM10.6 million.
Segmental Performance: A Closer Look
FITTERS DIVERSIFIED BERHAD operates across several key segments, each contributing uniquely to the overall performance:
Fire Services Division
This division has shown remarkable strength. For the quarter ended 31 March 2025, revenue increased by 56.3% to RM40.2 million, and it recorded a profit before tax of RM0.6 million, a substantial improvement from a loss of RM2.4 million in the corresponding quarter last year. Cumulatively, revenue for the financial period surged by 50.9% to RM138.8 million, with profit before tax skyrocketing by 914.1% to RM4.8 million. This impressive growth is largely driven by contributions from ongoing Data Centers projects, indicating a strong pipeline for this segment.
Property Development & Construction Division
This segment faced headwinds. Quarterly revenue declined sharply by 94.8% to RM37,000, down from RM0.7 million in the prior year. The division reported a loss before tax of RM0.4 million, though this was an improvement from the RM4.9 million loss in the corresponding quarter last year. For the cumulative period, revenue fell by 80.8% to RM4.7 million, and the division swung to a loss before tax of RM0.4 million from a profit of RM0.6 million. This decline is primarily due to the completion of construction work for Phase 2 of Taman Putra in February 2024, with no active development projects currently underway as upcoming projects are still in the planning stage.
Renewable & Waste-To-Energy Division
This division presented a mixed picture. Quarterly revenue increased by 15.7% to RM55.6 million. However, it reported a wider loss before tax of RM2.9 million compared to a loss of RM1.3 million in the corresponding quarter last year. This was mainly due to the low fresh fruit bunch (FFB) season, which resulted in a reduced Oil Extraction Rate (OER) and lower crop volumes. In contrast, for the cumulative financial period, revenue increased significantly by 52.6% to RM256.6 million, and the division returned to profitability with a profit before tax of RM1.8 million, a stark improvement from a RM6.0 million loss in the previous corresponding period. This cumulative profitability was driven by higher sales volumes of CPO and PK, increased FFB intake, and an upward trend in CPO and PK prices.
Financial Health: A Stable Position
Looking at the balance sheet as at 31 March 2025, FITTERS DIVERSIFIED BERHAD maintains a stable financial position. Total assets stood at RM479.6 million, slightly down from RM483.4 million in the preceding financial year. However, total liabilities decreased to RM86.9 million from RM91.7 million, leading to a slight increase in total equity to RM392.7 million. Net assets per share saw a marginal increase to RM0.1677 from RM0.1673.
A key highlight from the cash flow statement is the significant turnaround in net cash generated from operating activities, which moved from a negative RM98.1 million in the previous 12 months to a positive RM21.0 million for the period ended 31 March 2025. This indicates a much healthier operational cash generation. Cash and cash equivalents at the end of the period also increased to RM167.9 million from RM150.2 million a year ago, providing a strong liquidity position.
Risks and Prospects: Navigating the Future
FITTERS DIVERSIFIED BERHAD remains cautiously optimistic about its future prospects, emphasizing prudent cash flow management and close oversight of business operations. However, the company acknowledges several factors that could influence its performance:
- Fire Services: The outlook is positive, with improved turnover and profitability driven by Hyperscale Data Centers in Malaysia. The ongoing involvement in these projects is expected to provide a stable order book and sustain profitability for the next three to four years.
- Property Development & Construction: While Phase 2 of Taman Putra is complete, the focus is now on the re-development of Plaza Perkeliling, which is in the planning and building plan submission stage. This indicates a strategic shift towards maximizing existing asset value.
- Renewable & Waste-to-Energy: The CPO price is projected to remain robust around RM4,000 per metric tonne in the first half of 2025, largely due to Indonesia’s B40 mandate. However, CPO prices are expected to remain volatile due to global supply-demand dynamics and competition from alternative vegetable oils. Domestically, Malaysia’s Budget 2025 introduces measures like a new minimum wage, fuel subsidy removal, and increased electricity tariffs, which are expected to raise operational costs for the local palm oil industry. Management’s strategy involves enhancing mill efficiency through automation, increased production output, and disciplined cost control. The medical waste market, though highly regulated and competitive, has seen increased collection volumes, with plans to expand processing capacity.
The company also notes that changes in recent U.S. trade tariffs may significantly impact material pricing for both imported and domestically produced materials across its operations.
Dividends
The Board of Directors has not recommended the payment of any dividend for the financial period ended 31 March 2025.
Summary and
FITTERS DIVERSIFIED BERHAD’s latest quarterly report presents a compelling narrative of resilience and strategic adaptation. The significant year-on-year revenue growth and the impressive turnaround to profitability for the cumulative period highlight the underlying strengths, particularly in the Fire Services and Renewable & Waste-to-Energy segments. The improvement in operating cash flow is a strong indicator of better operational efficiency and financial health.
However, it’s also clear that the company faces a mixed bag of challenges and opportunities across its diverse portfolio. While the Fire Services segment appears to be a consistent growth driver, the Property Development & Construction segment is in a transitional phase. The Renewable & Waste-to-Energy segment, despite strong cumulative performance, remains susceptible to commodity price volatility, seasonality, and rising operational costs in the domestic market.
Key points to consider:
- Strong Revenue Growth: The Group achieved substantial revenue increases for both the quarter and the cumulative period, demonstrating robust top-line expansion.
- Profitability Turnaround: The cumulative profit before tax marks a significant recovery from previous losses, indicating improved operational efficiency and a healthier financial trajectory.
- Segmental Strengths: The Fire Services division, particularly with its involvement in Data Centers, is a strong performer with a stable outlook. The Renewable & Waste-to-Energy segment also showed impressive cumulative profit, despite quarterly fluctuations.
- Strategic Adaptations: The company is actively managing its property portfolio by re-developing existing assets and is focusing on efficiency and cost control in the palm oil sector to mitigate rising operational costs.
- Market Volatility: External factors such as CPO price fluctuations, U.S. trade tariffs, and domestic policy changes (e.g., minimum wage, subsidies) pose ongoing risks that management is actively addressing.
Overall, FITTERS DIVERSIFIED BERHAD seems to be navigating a complex environment with a clear focus on strengthening its core businesses and managing risks. The positive shift in overall profitability and cash flow generation are encouraging signs for long-term stability.
Final Thoughts and What’s Next?
From a professional perspective, FITTERS DIVERSIFIED BERHAD’s ability to pivot towards profitability in a challenging environment, largely driven by its diversified segments, is commendable. The strategic focus on high-growth areas like data centers in Fire Services, and efforts to enhance efficiency in Renewable & Waste-to-Energy, show foresight. However, the reliance on commodity prices and sensitivity to policy changes remain key areas to monitor.
What are your thoughts on FITTERS DIVERSIFIED BERHAD’s performance? Do you think the company can maintain this growth momentum and navigate the evolving market challenges in the coming years? Share your insights in the comments section below!
Stay tuned for more deep dives into Malaysian company reports!
