Apollo Food Holdings: A Sweet Performance in FY2025 with Record Operational Profit and 100% Dividend Payout
Malaysian confectionery giant, Apollo Food Holdings Berhad (APOLLO), has just unwrapped its financial results for the fourth quarter and full year ended 30 April 2025 (FY2025). The report paints a delightful picture of growth, marking a significant milestone for the company known for its beloved chocolate treats and layer cakes.
Despite a challenging macroeconomic environment, Apollo achieved record revenue and its highest operational net profit in history. What’s more, the company sweetened the deal for shareholders with a remarkable 100% dividend payout ratio for FY2025.
Let’s dive into the details and discover the key ingredients behind Apollo’s success and what lies ahead.
Core Data Highlights
Fourth Quarter Shines Brightly
Apollo’s fourth quarter (4Q FY2025) performance was particularly impressive, demonstrating strong operational efficiency.
4Q FY2025
Revenue: RM73.3 million
Net Profit: RM9.46 million
4Q FY2024
Revenue: RM57.2 million
Net Profit: RM6.30 million
The significant 28% year-on-year (YoY) increase in revenue to RM73.3 million (from RM57.2 million in the same quarter last year) was primarily driven by robust domestic and export sales. This higher top-line growth, coupled with lower operating expenses resulting from streamlining initiatives, led to a substantial 50% YoY surge in net profit for the quarter.
Full Year Achieves New Heights
For the full financial year, Apollo truly outdid itself, setting new records.
FY2025
Revenue: RM298.4 million
Net Profit: RM40.2 million
Basic Earnings Per Share: 50.22 sen
Total Dividend Per Share: 50 sen
FY2024
Revenue: RM255.3 million
Net Profit: RM54.1 million
Basic Earnings Per Share: 67.66 sen
Total Dividend Per Share: 70 sen
Apollo achieved a record revenue of RM298.4 million for FY2025, a solid 17% YoY increase. While the reported net profit for FY2025 was RM40.2 million, a 26% decrease from the previous year’s RM54.1 million, it’s crucial to understand the context. The previous financial year (FY2024) included a significant non-operational gain of RM18.6 million from the disposal of properties. When we exclude this one-off gain, Apollo’s *operational* net profit for FY2025 actually increased by a healthy 13% YoY, reaching its highest level in the Group’s history. This highlights the underlying strength of their core business operations.
In a move that will surely please shareholders, Apollo declared a second interim dividend of 20 sen per share, payable on 23 July 2025. Combined with the first interim dividend of 30 sen paid earlier, the total dividend payout for FY2025 stands at a generous 100% of its earnings.
Financial Health Check: Balance Sheet & Cash Flow
Beyond the income statement, Apollo’s balance sheet reflects a stable and healthy financial position.
| Key Balance Sheet Item | As at 30 Apr 2025 (RM’000) | As at 30 Apr 2024 (RM’000) |
|---|---|---|
| Total Assets | 264,981 | 246,353 |
| Cash and Cash Equivalents | 116,715 | 104,306 |
| Net Assets Per Share (RM) | 2.96 | 2.81 |
The Group’s total assets grew to RM264.98 million, largely supported by an increase in current assets, including a healthy rise in cash and cash equivalents to RM116.72 million. This indicates strong liquidity. Net assets per share also saw a positive uptick, reinforcing the company’s solid financial foundation.
Looking at cash flow for the full year, net cash from operating activities saw a decrease to RM26.51 million (from RM47.15 million in FY2024), largely due to an increase in trade and other receivables. However, the Group’s net increase in cash and cash equivalents for the year was a healthy RM13.26 million, significantly higher than the RM2.92 million in the previous year. This was primarily due to a lower cash outflow from financing activities (reduced dividend payments compared to the previous year) and lower capital expenditure from investing activities.
Navigating Headwinds and Charting Future Growth
Mr. Cheah Jia Ming, Managing Director of Apollo, highlighted the effectiveness of their proactive sales strategies and improvements in operational discipline and cost management as key drivers for the record results amidst a volatile macroeconomic environment. This proactive stance has clearly strengthened their core fundamentals.
Looking ahead to FY2026, Apollo is not resting on its laurels. The company plans to continue rationalising its manufacturing facilities and executing capacity expansion plans. These initiatives are crucial for enhancing productivity and maximising cost efficiency, laying the groundwork for sustained growth.
Furthermore, Apollo is set to embark on significant marketing plans to re-engage with the market. After years of subdued branding activities, consumers can expect to see increased product visibility and stronger brand engagement through refreshed marketing initiatives. This strategic move aims to strengthen brand relevance and connect with the next generation of consumers.
However, the management remains cautious about ongoing fluctuations in raw material prices and broader macroeconomic uncertainties. Prudent management of input costs and operating risks will continue to be a priority.
Summary and Investment Recommendations
Apollo Food Holdings has delivered a strong performance in FY2025, marked by record revenue and its highest operational net profit in the Group’s history. This commendable achievement, coupled with a 100% dividend payout, underscores the company’s robust operational strategies and effective cost management amidst a challenging economic landscape.
The Group’s proactive approach to sales, coupled with ongoing efforts to streamline manufacturing and expand capacity, positions it well for future growth. The planned re-engagement with the market through refreshed marketing initiatives also signals a strategic push to reinforce brand relevance and expand its consumer base.
However, investors should remain mindful of the external factors that could impact performance:
- Ongoing fluctuations in raw material prices.
- Broader macroeconomic uncertainties.
Despite these potential headwinds, Apollo’s commitment to operational efficiency and strategic market re-engagement suggests a positive outlook for its continued growth trajectory.
From a professional standpoint, Apollo’s FY2025 results demonstrate a commendable balance between achieving growth and prudently managing risks. The focus on operational efficiency, coupled with a renewed marketing push, suggests a forward-looking management team dedicated to sustaining the company’s competitive edge in the confectionery market.
What are your thoughts on Apollo’s strategy to re-engage with consumers? Do you believe they can maintain this impressive growth momentum in the coming years amidst market volatility? Share your insights in the comments below!
