Greetings, fellow investors and market enthusiasts! Today, we’re diving into the latest financial disclosures from ABLE GLOBAL BERHAD (ABLE), a diversified Malaysian conglomerate with interests spanning tin manufacturing, food & beverage (F&B), and property development. The company recently released its unaudited results for the First Quarter ended 31 March 2025, and while the headline figures show a dip in performance compared to the previous year, there’s more to unpack, including a reassuring dividend announcement.
This report offers a crucial glimpse into how ABLE is navigating the current economic landscape. Let’s break down the key numbers and strategic insights to understand what this means for the company’s trajectory.
Q1 2025 Performance: A Closer Look
ABLE Global Berhad reported a decline in both revenue and profit before tax for the first quarter of 2025 compared to the same period last year. However, the company has declared a fourth interim dividend, signaling continued commitment to shareholder returns.
Core Financial Highlights: Navigating a Challenging Quarter
For the first quarter ended 31 March 2025, ABLE recorded a revenue of RM157.50 million and a profit before tax of RM18.30 million. Let’s put these figures into perspective:
Revenue (RM’000)
Q1 2025: 157,501
Compared to
Q1 2024: 171,248
Decrease: 8.03%
Profit Before Tax (RM’000)
Q1 2025: 18,302
Compared to
Q1 2024: 20,960
Decrease: 12.68%
Profit Attributable to Owners (RM’000)
Q1 2025: 14,093
Compared to
Q1 2024: 15,189
Decrease: 7.22%
Basic Earnings Per Share (sen)
Q1 2025: 4.58
Compared to
Q1 2024: 4.94
Decrease: 7.29%
The Group’s revenue saw a decrease of RM13.75 million, and profit before tax fell by RM2.66 million compared to the corresponding quarter of the preceding year. This overall decline was primarily driven by lower sales across its key operating segments.
Segmental Performance: A Mixed Bag
Understanding the performance of each business unit provides a clearer picture of the Group’s challenges and opportunities:
Tin Cans Manufacturing Segment
This segment experienced a notable decrease in revenue by RM10.08 million, dropping from RM30.83 million in Q1 2024 to RM20.75 million in Q1 2025, mainly due to lower sales. Consequently, profit before tax for this segment also decreased by RM1.99 million, settling at RM2.52 million.
Food & Beverage (F&B) Segment
The F&B segment, a significant contributor to ABLE’s top line, also saw a dip. Revenue decreased by RM9.69 million, from RM140.42 million to RM130.73 million. This was attributed to lower demand from customers. Profit before tax for F&B followed suit, declining by RM0.69 million to RM16.04 million, again primarily due to the reduced sales volume.
Property Development Segment
In contrast to the other segments, the property development arm saw its revenue increase to RM6.03 million in Q1 2025. However, despite the higher revenue, this segment swung from a profit of RM0.09 million in the corresponding quarter last year to a loss of RM0.11 million, mainly due to higher costs incurred during the quarter.
Financial Health Snapshot: Balance Sheet & Cash Flow
Looking at the balance sheet as at 31 March 2025, ABLE’s total assets stood at RM787.01 million, a decrease from RM833.82 million at 31 December 2024. Total equity, however, showed a healthy increase to RM492.47 million from RM482.71 million. This positive movement in equity is reflected in the Net Assets (NA) per share, which rose from RM1.56 as at 31 December 2024 to RM1.59 as at 31 March 2025.
On the cash flow front, ABLE generated a net cash of RM1.18 million from operating activities for Q1 2025. This is a significant reduction compared to RM31.99 million generated in the same period last year, indicating tighter operational cash generation. The company also reported a higher net cash outflow from financing activities, totaling RM36.75 million, primarily due to dividend payments and repayment of borrowings.
Risks and Prospects: Charting the Path Forward
ABLE’s management provided insights into the outlook for each of its segments, acknowledging both challenges and strategic plans:
Tin Cans Manufacturing Industry
The tin cans manufacturing industry remains highly competitive. While steel prices are currently stable, the business environment is challenging. Despite this, management anticipates the segment to maintain its profitability.
Food & Beverage Industry
The global demand for dairy products remains robust. Raw material prices for this segment have been relatively stable in the past quarter. Although commodity prices and foreign exchange rates are expected to be volatile due to global weather patterns and economic conditions, ABLE expects this segment to continue being profitable.
Property Development Segment
This segment holds significant future potential. The conversion of the Carey Island land from agricultural to industrial and commercial use is ongoing, pending authorities’ approval. Once approved, ABLE Development Sdn Bhd plans to launch sales, which could be a substantial revenue driver. In the interim, the land is generating passive income from palm oil harvesting. Additionally, infrastructure work has commenced on the Kapar land, with progressive work expected to contribute to the company’s revenue.
Dividends: Rewarding Shareholders
In a positive note for shareholders, the Board of Directors has declared a fourth interim dividend of 1.75 sen per ordinary share for the financial year ended 31 December 2025. The payment and book closure dates will be announced later. This follows the payment of a 1.5 sen per share dividend for FY2024 on 3 April 2025, demonstrating ABLE’s commitment to returning value to its investors.
Summary and
ABLE Global Berhad’s Q1 2025 results reflect a challenging quarter with declines in revenue and profit across its core manufacturing and F&B segments. The property development segment, while showing revenue growth, incurred a loss due to higher costs. Operational cash flow saw a significant reduction, and cash reserves decreased. However, the company’s balance sheet remains solid with an increase in net assets per share, and the declaration of a new interim dividend underscores its commitment to shareholder returns.
Looking ahead, the company’s outlook is mixed. While the tin manufacturing and F&B segments face ongoing market challenges and volatility, they are expected to remain profitable. The property development segment, particularly the Carey Island project, represents a long-term growth catalyst, contingent on regulatory approvals. The commencement of infrastructure work on the Kapar land also provides a clearer path to future revenue contribution.
Key points to consider moving forward:
- The ability of the Tin Manufacturing and F&B segments to navigate competitive pressures and maintain profitability amidst lower demand.
- Progress and timely approvals for the Carey Island land conversion and subsequent property launches.
- Effective cost management in the property development segment to ensure profitability as projects commence.
- The overall impact of global economic volatility and commodity price fluctuations on raw material costs and foreign exchange.
- The company’s cash flow generation from operations, which saw a significant decrease, warrants close monitoring.
It’s important for investors to consider these factors when evaluating ABLE’s future prospects.
As a seasoned blogger observing the Malaysian market, I see ABLE Global Berhad in a period of consolidation and strategic repositioning. While the Q1 numbers present a hurdle, the management’s focus on long-term projects like the property development initiatives and their consistent dividend policy are positive signals. The ability to maintain profitability in its mature segments amidst a tough market also speaks to operational resilience.
Do you believe ABLE can leverage its property development pipeline to offset the headwinds in its traditional businesses? Share your thoughts in the comments below!
