Hello fellow investors and market watchers! Today, we’re diving into the latest financial performance of OVERSEA ENTERPRISE BERHAD for its fourth quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s operational health and strategic direction, especially for those of us following the Malaysian F&B sector. While revenue figures show promising expansion, the bottom line tells a more nuanced story of rising operational costs and the impact of prior-year one-off gains.
Key Takeaways from OVERSEA ENTERPRISE BERHAD’s Q4 2025 Report
- Revenue Growth: The Group saw a 15% increase in quarterly revenue and an 11% increase year-to-date.
- Profitability Shift: A significant swing from profit to loss for both the quarter and the full year, primarily due to higher operational costs and the absence of one-off gains from the previous year.
- Restaurant Segment Driving Revenue: The restaurant segment continues to be the primary revenue driver, boosted by a new outlet.
- Increased Liabilities: The Group’s total liabilities, particularly lease liabilities, have seen a substantial increase.
- No Dividends: No interim dividend was recommended for the quarter.
Decoding OVERSEA ENTERPRISE BERHAD’s Latest Financials: Growth Amidst Rising Costs
A Look at the Numbers: Revenue Up, Profits Down
OVERSEA ENTERPRISE BERHAD reported a commendable increase in revenue for both the quarter and the full financial year. However, this growth was overshadowed by a significant swing from profit to loss. Let’s break down the key figures:
Quarterly Performance (3 Months Ended 31 March)
Q4 2025
Revenue: RM22.35 million
Pre-tax Profit/(Loss): RM(0.22) million (Loss)
Net Profit/(Loss): RM(0.63) million (Loss)
Basic Earnings per Share: (0.03) sen
Q4 2024
Revenue: RM19.38 million
Pre-tax Profit/(Loss): RM1.78 million (Profit)
Net Profit/(Loss): RM0.83 million (Profit)
Basic Earnings per Share: 0.04 sen
The Group’s revenue for Q4 2025 surged by 15% to RM22.35 million compared to RM19.38 million in the same quarter last year. This is a positive sign of top-line growth. However, the Group swung from a pre-tax profit of RM1.78 million in Q4 2024 to a pre-tax loss of RM0.22 million in Q4 2025. This significant shift (a decline of over 100%) was primarily attributed to higher operational costs across the Group, including expenses from a newly opened outlet. It’s also important to note that the previous year’s profit included a one-off gain of RM2.3 million from the termination of a Right-of-Use (ROU) asset, which was not present this quarter, further impacting the comparison.
Full Year Performance (12 Months Ended 31 March)
FY 2025
Revenue: RM78.40 million
Pre-tax Profit/(Loss): RM(2.37) million (Loss)
Net Profit/(Loss): RM(3.16) million (Loss)
Basic Earnings per Share: (0.14) sen
FY 2024
Revenue: RM70.67 million
Pre-tax Profit/(Loss): RM5.82 million (Profit)
Net Profit/(Loss): RM4.09 million (Profit)
Basic Earnings per Share: 0.22 sen
For the full financial year, OVERSEA ENTERPRISE BERHAD’s revenue grew by 11% to RM78.40 million from RM70.67 million in the previous year. Similar to the quarterly trend, the Group recorded a full-year pre-tax loss of RM2.37 million, a stark contrast to the RM5.82 million profit reported in FY 2024. This full-year performance underscores the challenges faced with escalating operational costs and the absence of non-recurring gains that boosted the previous year’s results.
Segmental Insights: Restaurants Lead Revenue, Manufacturing Shows Mixed Results
The report provides a detailed breakdown of performance across the Group’s three main segments: Restaurant, Manufacturing, and Trading & Investment Holding.
| Segment | Q4 2025 Revenue (RM’000) | Q4 2024 Revenue (RM’000) | Q4 Change (%) | FY 2025 Revenue (RM’000) | FY 2024 Revenue (RM’000) | FY Change (%) |
|---|---|---|---|---|---|---|
| Restaurant | 22,054 | 19,101 | 15% | 65,135 | 56,148 | 16% |
| Manufacturing | 308 | 280 | 10% | 13,255 | 14,493 | -9% |
| Others | (8) | (5) | -60% | 9 | 31 | -71% |
The Restaurant segment remains the powerhouse, with Q4 revenue jumping 15% to RM22.1 million and full-year revenue up 16% to RM65.1 million. This growth is largely attributed to the commencement of business of a new outlet in December 2024, demonstrating the success of their expansion strategy. However, the segment’s pre-tax profit for Q4 2025 significantly decreased by 70% to RM1.1 million, primarily due to the absence of the RM2.3 million ROU asset termination gain recorded in the prior year’s corresponding quarter.
The Manufacturing segment saw a modest 10% increase in Q4 revenue but a 9% decline for the full year. Encouragingly, its pre-tax loss for Q4 improved by 10%,
