Fajarbaru Builder Group’s Q3 FY2025: Navigating Headwinds with Strategic Vision
Greetings, fellow investors! Today, we’re diving deep into the latest financial revelations from Fajarbaru Builder Group Berhad (FBG), as outlined in their unaudited interim financial report for the 3rd Quarter ended 31 March 2025. This report offers a crucial snapshot of the company’s performance amidst evolving market dynamics.
While the quarter under review presented some immediate challenges, particularly a dip in profitability compared to the previous year’s corresponding period, FBG’s year-to-date revenue shows resilience, and the company continues to lay down strategic foundations for future growth. Let’s unpack the numbers and understand what’s shaping FBG’s trajectory.
Financial Performance Overview
FBG’s third quarter of the financial year 2025 (3Q FY2025) saw a notable shift in its financial landscape. Here’s a breakdown of the key figures compared to the same quarter last year:
Current Quarter (31 March 2025)
Revenue: RM101.02 million
(Loss)/Profit Before Tax: RM(3.26) million (Loss)
(Loss)/Profit for the period: RM(3.02) million (Loss)
(Loss)/Profit attributable to Owners: RM(2.62) million (Loss)
Basic Earnings/(Loss) Per Share: (0.35) sen
Corresponding Quarter Last Year (31 March 2024)
Revenue: RM142.65 million
(Loss)/Profit Before Tax: RM29.12 million (Profit)
(Loss)/Profit for the period: RM27.14 million (Profit)
(Loss)/Profit attributable to Owners: RM27.19 million (Profit)
Basic Earnings/(Loss) Per Share: 3.67 sen
The Group’s revenue for the quarter decreased by 29% from RM142.65 million to RM101.02 million. This decline, coupled with a swing from a profit of RM29.12 million to a loss before tax of RM3.26 million, was primarily influenced by the Property Development segment, which we will delve into shortly.
Year-to-Date Performance
Looking at the cumulative nine months ended 31 March 2025, the picture is slightly different, reflecting sustained activity over a longer period:
Current Year-to-Date (31 March 2025)
Revenue: RM350.80 million
Profit Before Tax: RM8.03 million
Profit for the period: RM5.92 million
Profit attributable to Owners: RM8.04 million
Basic Earnings Per Share: 1.08 sen
Corresponding Year-to-Date (31 March 2024)
Revenue: RM342.42 million
Profit Before Tax: RM56.92 million
Profit for the period: RM50.98 million
Profit attributable to Owners: RM49.18 million
Basic Earnings Per Share: 6.63 sen
Year-to-date revenue saw a modest 2% increase to RM350.80 million. However, the profit before tax for the nine-month period significantly decreased by 86% to RM8.03 million, indicating pressure on margins and profitability across the Group’s operations this financial year.
Segmental Performance Analysis (Q3 FY2025 vs. Q3 FY2024)
Understanding the contribution of each business segment is crucial for a complete picture:
- Construction Segment: This segment was a bright spot, reporting a robust revenue of RM82.45 million, a substantial increase from RM40.08 million in the corresponding quarter last year. The loss before tax also significantly improved to RM0.33 million from RM3.01 million previously. This positive performance was driven by progressive revenue contributions from projects awarded in the prior financial year, which are now maturing.
- Property Development Segment: This segment was the primary drag on overall performance. Revenue plummeted to RM14.49 million from RM99.05 million, and it swung to a loss before tax of RM0.92 million from a profit of RM33.40 million. This decline is largely attributed to the Vierra Residence @ Kinrara project nearing completion, resulting in lower revenue recognition.
- Logging and Timber Trading Segment: This segment reported no revenue for the current quarter (compared to RM1.11 million last year) and a loss before tax of RM0.66 million (compared to a profit of RM0.47 million). The absence of revenue was due to no approved working block, with the Group currently in the process of obtaining new permits.
- Trading Segment: Revenue increased to RM3.88 million from RM1.99 million, and it returned to a profit before tax of RM0.14 million from a loss of RM0.10 million. This improvement was due to higher purchases of construction materials for the Group’s new and ongoing construction projects.
- Logistic Segment: This segment showed relatively stable operations with revenue of RM0.20 million and a minimal loss before tax of RM0.06 million, consistent with its usual operations.
Financial Health and Cash Flow
As of 31 March 2025, FBG’s total assets stood at RM663.50 million, a slight increase from RM645.94 million at 30 June 2024. However, total equity saw a marginal decrease to RM427.36 million from RM439.38 million, while total liabilities increased to RM236.14 million from RM206.55
