Malaysian investors, let’s dive into the latest financial snapshot from CITRA NUSA HOLDINGS BERHAD. The company has just released its unaudited financial results for the first quarter ended 31 March 2025, and it paints a picture of a challenging period, with a shift from profit to loss compared to the same quarter last year.
As a diversified group involved in marketing and trading, manufacturing, investment holding, and food & beverage businesses, CITRA NUSA’s performance offers insights into the broader economic currents affecting Malaysian enterprises. This report aims to dissect the core numbers, explore the underlying factors, and look ahead at what might be on the horizon for the company.
Core Data Highlights: A Quarter Under Pressure
The first quarter of 2025 saw a significant downturn in CITRA NUSA’s financial performance when compared to the corresponding period in the previous year. While revenue declined, the most impactful change was the reversal from a profitable quarter to a loss-making one.
Current Quarter (Q1 2025)
Revenue: RM15.09 million
Profit Before Tax: RM(0.77) million (Loss)
Profit After Tax: RM(1.11) million (Loss)
Profit Attributable to Owners: RM(1.11) million (Loss)
Earnings Per Share: (0.15) sen
Preceding Year Corresponding Quarter (Q1 2024)
Revenue: RM17.73 million
Profit Before Tax: RM1.65 million (Profit)
Profit After Tax: RM1.52 million (Profit)
Profit Attributable to Owners: RM1.46 million (Profit)
Earnings Per Share: 0.20 sen
Overall, the group’s revenue for the first quarter of 2025 stood at RM15.09 million, representing a 15% decrease compared to the RM17.73 million recorded in the same period last year. This decline in top-line performance directly impacted profitability, as the company swung from a profit before tax of RM1.65 million to a loss before tax of RM0.77 million. Consequently, the profit after tax also reversed, moving from a RM1.52 million profit to a RM1.11 million loss for the quarter.
A Look Under the Hood: Segmental Performance
Delving deeper into the business segments reveals varied performances:
- Marketing and Trading: This segment saw a significant reduction in revenue, decreasing by 23% from RM14.44 million to RM11.09 million. The company attributed this decline primarily to reduced customer demand during the quarter. This segment also shifted from a profit to a loss.
- Manufacturing: In contrast, the manufacturing segment showed resilience, with revenue increasing by 3%, from RM6.39 million to RM6.58 million. This positive movement was mainly driven by an increase in customer orders. Despite the revenue growth, this segment continued to record a loss, though it was a smaller loss compared to the previous year.
- Others: Revenue from other segments, which include investment holding and retail food and beverage businesses, remained relatively stable at RM0.39 million. However, this segment also contributed to the overall loss.
Financial Health Check: Balance Sheet and Cash Flow
The balance sheet as at 31 March 2025 shows some shifts:
- Total Assets: Decreased to RM77.20 million from RM82.39 million at the end of 2024.
- Current Assets: Saw a notable decline to RM41.73 million from RM46.78 million, largely due to a decrease in inventories and cash and cash equivalents.
- Total Liabilities: A positive note is the reduction in total liabilities, which decreased to RM11.86 million from RM16.02 million, indicating some debt management efforts.
- Net Assets per Share: Remained consistent at RM0.09.
Cash flow from operations also saw a significant change. The group shifted from generating cash of RM2.34 million in the immediate preceding quarter to using RM1.25 million in operating activities this quarter. This, combined with increased cash usage in investing activities (RM2.04 million), led to a net decrease in cash and cash equivalents of RM3.60 million for the period, bringing the cash balance down to RM11.99 million.
Navigating the Headwinds: Risks and Future Outlook
CITRA NUSA acknowledges the challenging market conditions impacting its performance. The decline in revenue, particularly in the marketing and trading segment, is attributed to a combination of factors:
- Seasonal Festive Period: Typically, consumer activity softens during certain festive periods.
- Declining Purchasing Power: Ongoing economic uncertainty is leading to a general reduction in consumer spending.
- Inflationary Pressures: The company highlighted the persistent impact of rising raw material prices and increased logistics and operational costs, which contribute to higher overall production expenses.
While the report doesn’t detail specific new strategies to counter these challenges, the company’s awareness of these macro-economic factors is crucial. Proactive financial management is evident through the company’s share buyback program during the quarter, where it acquired 200,000 shares at an average price of RM0.045 per share, holding them as treasury shares. Furthermore, the company is seeking shareholder approval for the renewal of mandates for recurrent related party transactions and the authority to purchase its own shares, indicating a focus on capital management and operational efficiency.
Summary and
CITRA NUSA HOLDINGS BERHAD’s first quarter of 2025 was undoubtedly a tough period, marked by a revenue decline and a shift to a net loss. The reduced customer demand, exacerbated by broader economic uncertainties and inflationary pressures, weighed heavily on the group’s performance, particularly in its marketing and trading segment.
However, it’s not all challenging news. The manufacturing segment showed a commendable increase in revenue, indicating some underlying strength in that area. Furthermore, the company has managed to reduce its total liabilities, which is a positive sign for its financial structure. The ongoing share buyback program and the proposed renewal of mandates also demonstrate the company’s commitment to active capital management in these challenging times.
As we look ahead, the company will need to navigate persistent economic headwinds and inflationary pressures. Its ability to adapt to changing consumer demands and manage operational costs will be critical in returning to profitability. Investors will be keen to see how CITRA NUSA leverages the strengths in its manufacturing segment and implements strategies to revitalise its trading and other businesses.
- Market Demand Fluctuations: Reduced customer demand, particularly in the marketing and trading segment, remains a key challenge.
- Inflationary Cost Pressures: Rising raw material, logistics, and operational costs continue to impact profitability across the industry.
- Economic Uncertainty: General decline in purchasing power due to ongoing economic uncertainty poses a risk to consumer-facing segments.
What are your thoughts on CITRA NUSA’s Q1 performance? Do you believe their current strategies and financial management can overcome the prevailing market challenges and steer the company back to growth?
Share your views in the comments below!
