Core Data Highlights: A Mixed Bag of Growth and Challenges

Perstima’s latest financial report paints a picture of significant revenue growth, reflecting increased sales volumes and, in some cases, higher selling prices. However, this growth has yet to fully translate into consistent profitability across all segments.

Group Performance: Quarter-on-Quarter Comparison

Let’s look at the key figures for the quarter ended 31 March 2025 compared to the same period last year:

For the quarter, total revenue surged by an impressive 39.4% (RM93.7 million) compared to the same period last year. This was primarily driven by higher sales volumes and increased selling prices. Despite this robust revenue growth, the Group reported a loss before tax of RM7.9 million, though this is an improvement from the RM15.9 million loss recorded in the corresponding period last year. The continued loss is attributed to lower profit margins despite the higher sales volume.

Group Performance: Full Financial Year Comparison

Looking at the full financial year ended 31 March 2025:

On a full-year basis, Perstima’s revenue grew by 19.8%, reaching RM1,100.5 million. The Group also managed to narrow its full-year loss before tax to RM19.6 million, an improvement from the RM25.5 million loss in the previous financial year.

Segment Performance Overview (Financial Year Ended 31 March 2025)

For the full financial year, Perstima’s performance across its key geographical segments contributed to the overall results as follows:

This table illustrates the full-year contribution of each region to Perstima’s top and bottom lines. Now, let’s delve into the quarterly performance for a more granular view:

Malaysia Operations

Perstima’s Malaysian segment saw its revenue increase by 21.9% to RM181.0 million for the quarter (Jan-Mar 2025) compared to the same period last year. This was driven by higher sales volumes, even with lower selling prices. However, the profit before tax for Malaysia significantly declined by 60.1% to RM8.2 million, primarily due to lower profit margins.

Vietnam Operations

The Vietnam subsidiary delivered a strong performance, with revenue jumping by 55.5% to RM115.6 million in the current quarter compared to the previous year’s corresponding period. This was largely due to higher sales volumes. Profit before tax also surged by 71.8% to RM9.3 million, showcasing improved profitability despite some offset from lower selling prices.

Philippines Operations

The Philippines segment experienced remarkable revenue growth, increasing by more than 100% to RM38.6 million for the quarter. This was a result of higher sales volumes. While the segment continued to report a loss before tax of RM25.9 million, it’s an improvement from the RM33.2 million loss in the prior year’s corresponding period. The report notes that the Philippine subsidiary, which began commercial operations in August 2022, is still in the process of fine-tuning its operational efficiency. Challenges here include lower profit margins, a revaluation of inventories leading to a RM4.9 million impact, and higher exchange losses.

Financial Health and Borrowings

Beyond operational performance, a look at Perstima’s financial health reveals some notable shifts. The Group’s total borrowings increased significantly, from RM249.624 million as at 31 March 2024 to RM389.983 million as at 31 March 2025. This increase is predominantly in short-term unsecured bank borrowings, which rose from RM176.135 million to RM343.236 million in bankers’ acceptances. This indicates a greater reliance on short-term financing.

The report also highlights that there were no capital commitments, significant unusual items, or changes in contingent liabilities during the period, suggesting stability in these areas.

Dividend

It is important to note that no dividend has been declared for the period ended 31 March 2025.

Risk and Prospect Analysis: Navigating Headwinds

Perstima acknowledges that the operating environment will continue to be challenging, with these challenges expected to persist throughout the current financial year and into financial year 2026. The key areas of concern include:

• Foreign Exchange Fluctuations: The volatility of foreign currencies can impact the Group’s costs and revenues, especially given its multi-jurisdictional operations.
• Industry Volatility from Tariffs: The imposition of tariffs by various countries (such as the USA) against others creates uncertainty and can disrupt global trade flows for tinplate.
• Anti-Dumping Duties: The recent position of Anti-dumping duties by the Royal Custom of Malaysia on imported tinplate adds another layer of complexity to the local market dynamics.

To navigate these headwinds, Perstima is employing several strategic measures:

• Leveraging Multi-Jurisdictional Operations: The presence in Malaysia, Vietnam, and the Philippines is seen as a potential mitigator against market volatility.
• Continuous Monitoring: The Group will closely monitor global and regional economic conditions, particularly aggregate supply and consumption patterns within the tinplate industry.
• Operational Focus: Perstima remains cautious and committed to maintaining product quality, intensifying sales and marketing efforts, and, crucially, improving production efficiencies and achieving cost savings. These internal efficiencies are vital for enhancing profitability in a challenging external environment.