Mobilia Holdings Berhad Q1 2025: Navigating Growth Amidst Global Currents
Good day, fellow investors and market enthusiasts! Today, we’re diving into the latest financial performance of Mobilia Holdings Berhad, a prominent player in Malaysia’s home furniture manufacturing sector. The company has just released its unaudited interim financial report for the first quarter ended 31 March 2025, and it offers some interesting insights into its operational resilience and strategic direction.
At a glance, Mobilia has demonstrated a commendable increase in revenue, signaling continued market demand for its products. However, the profit before tax saw a slight dip, mainly influenced by external factors. What’s more, the Board has announced an interim dividend, a positive signal for shareholders. Let’s unpack the details and see what this report tells us about Mobilia’s journey ahead.
Q1 2025 Performance: A Closer Look
Mobilia Holdings Berhad recorded a notable increase in its top-line performance for the first quarter of 2025 when compared to the same period last year. Here’s a breakdown:
Q1 2025
Revenue: RM25.73 million
Profit Before Tax: RM3.58 million
Profit After Tax: RM3.16 million
Basic Earnings Per Share: 0.45 sen
Q1 2024
Revenue: RM24.63 million
Profit Before Tax: RM4.03 million
Profit After Tax: RM3.06 million
Basic Earnings Per Share: 0.44 sen
The Group’s revenue for Q1 2025 grew by approximately RM1.10 million, or 4.47%, reaching RM25.73 million from RM24.63 million in the corresponding quarter of 2024. This growth was primarily fueled by higher sales volume in the American market, a testament to Mobilia’s strategic marketing initiatives in that region.
However, the profit before tax (PBT) for Q1 2025 experienced a slight decrease of approximately RM0.45 million, or 11.05%, settling at RM3.58 million compared to RM4.03 million in Q1 2024. This dip was mainly attributed to the weakening of the weighted average rate of the USD against the Malaysian Ringgit, which led to an increase in unrealised foreign exchange losses during the quarter.
Despite the PBT decline, the Group’s profit after tax (PAT) saw a modest increase to RM3.16 million from RM3.06 million in Q1 2024, translating to an improved basic earnings per share of 0.45 sen from 0.44 sen.
Quarter-on-Quarter Snapshot: Q1 2025 vs Q4 2024
Comparing the current quarter’s performance with the immediate preceding quarter (Q4 2024) also provides valuable context:
Q1 2025
Revenue: RM25.73 million
Profit Before Tax: RM3.58 million
Q4 2024
Revenue: RM27.01 million
Profit Before Tax: RM3.93 million
Revenue decreased by approximately RM1.28 million, or 4.75%, from RM27.01 million in Q4 2024 to RM25.73 million in Q1 2025. This decline was primarily due to lower sales volume in the European market during the current quarter. Correspondingly, PBT also saw an 8.81% reduction, dropping to RM3.58 million from RM3.93 million in Q4 2024, largely due to this lower sales revenue.
Geographical Revenue Breakdown (Q1 2025 vs Q1 2024)
Understanding where Mobilia’s revenue comes from is crucial. Here’s how different regions contributed:
| Region | Q1 2025 (RM’000) | Q1 2024 (RM’000) | Change (RM’000) | Change (%) |
|---|---|---|---|---|
| Asia (including Malaysia) | 13,547 | 13,488 | 59 | 0.44% |
| America | 10,118 | 7,900 | 2,218 | 28.08% |
| Europe | 1,552 | 2,834 | (1,282) | (45.23%) |
| Africa | 267 | 326 | (59) | (18.10%) |
| Australasia | 243 | 78 | 165 | 211.54% |
| Total | 25,727 | 24,626 | 1,101 | 4.47% |
The significant growth in the American market (up 28.08%) was a primary driver for overall revenue increase, successfully offsetting the substantial decline in the European market (down 45.23%). Australasia also showed impressive growth, albeit from a smaller base.
Financial Position and Cash Flow
As at 31 March 2025, Mobilia’s financial health appears solid. Total assets stood at RM117.89 million, slightly down from RM118.58 million at the end of 2024. Total equity, however, increased to RM82.30 million from RM79.63 million, reflecting an improved net assets per ordinary share of RM0.12 (from RM0.11).
Total borrowings decreased to RM24.45 million from RM28.74 million in Q1 2024, indicating effective debt management. However, cash and cash equivalents at the end of Q1 2025 were RM28.39 million, a decrease from RM30.94 million at the beginning of the financial year. This was primarily due to a net cash outflow from operating activities (RM123k for Q1 2025 compared to an inflow of RM238k in Q1 2024) and increased cash outflow for investing activities.
Outlook and Strategic Focus
Mobilia Holdings Berhad is keenly aware of the dynamic global economic landscape and has outlined clear strategies to navigate it. The Group plans to intensify its focus on marketing, design, and development to expand its market presence and customer base. This proactive approach aims to counteract the adverse effects of global inflation and currency fluctuations.
To address the challenge of rising labour costs, Mobilia is committed to enhancing operational efficiency through its ongoing factory transformation program and by integrating more automation into its production processes. This move is crucial for maintaining cost competitiveness and improving productivity.
In light of prevailing global economic uncertainties, the management emphasizes close monitoring of business performance, diligent cost minimization, and effective risk management to ensure long-term stability. Barring any unforeseen circumstances, the Board maintains a satisfactory outlook for the Group’s performance in the financial year 2025.
Dividend Announcement
In a positive development for shareholders, the Board of Directors has declared a first interim single tier dividend of 0.5 sen per ordinary share for the financial year ending 31 December 2025. This dividend will be paid on 8 July 2025 to shareholders whose names appear in the Record of Depositors by 20 June 2025.
Summary and
Mobilia Holdings Berhad’s Q1 2025 report showcases a company making steady progress on its top line, driven by strong performance in the American market. While profit before tax was impacted by currency headwinds and a slowdown in European sales, the Group’s ability to increase net profit and declare a dividend highlights its underlying resilience and commitment to shareholder returns. The management’s strategic focus on market expansion, operational efficiency through automation, and vigilant cost and risk management positions the company to tackle future challenges.
However, it is important for investors to consider the following key points from the report:
- Foreign Exchange Volatility: The weakening of the USD against the RM led to unrealised foreign exchange losses, impacting profitability. This remains a key external factor to monitor.
- Market Concentration Risk: While the American market performed well, the significant decline in European sales highlights the importance of diversified market strategies and the potential impact of regional economic shifts.
- Cash Flow from Operations: The shift to a net cash outflow from operating activities in Q1 2025 compared to an inflow in Q1 2024 warrants attention, though it could be related to working capital movements.
- Global Economic Uncertainties: The company itself acknowledges global economic uncertainties and rising labour costs as ongoing challenges.
Please note: This blog post is for informational purposes only and should not be construed as investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
Mobilia Holdings Berhad appears to be actively adapting to the evolving market environment, leveraging its strengths while addressing its weaknesses. The dividend announcement is a positive sign of confidence from the management.
What are your thoughts on Mobilia’s Q1 2025 performance? Do you think the company can maintain this growth momentum and mitigate currency risks in the coming quarters? Share your insights in the comments section below!
