NTPM Holdings Berhad Navigates Challenging Waters: A Deep Dive into Q4 FY2025 Performance

Greetings, fellow Malaysian retail investors! Today, we’re unpeeling the layers of NTPM Holdings Berhad’s latest financial report for the fourth quarter ended 30 April 2025 (Q4 FY2025). NTPM, a familiar name in our households for its tissue paper and personal care products, has just released figures that paint a picture of a challenging period, primarily impacted by external economic forces.

While the Group’s revenue remained relatively stable, the headline figure reveals a significant increase in losses, largely attributed to unrealized foreign exchange movements. Yet, beneath the surface, there are nuances in its business segments and strategic outlook that warrant our attention. Let’s delve into the numbers to understand what’s shaping NTPM’s current financial health and what lies ahead.

For the fourth quarter, the Group’s revenue saw a marginal decrease of 0.1% to RM215.7 million, compared to RM215.9 million in the same period last year. However, the loss before tax widened considerably to RM40.7 million, a stark contrast to the RM2.6 million loss recorded in Q4 FY2024. This substantial increase in loss was primarily driven by unrealized foreign exchange losses.

Looking at the full financial year, NTPM’s revenue decreased by 3.1% to RM877.7 million from RM905.5 million in the previous year. The Group swung from a profit before tax of RM6.8 million in FY2024 to a loss before tax of RM34.1 million in FY2025, further emphasizing the impact of the challenging operating environment and foreign exchange volatility.

Segmental Performance: A Tale of Two Divisions

NTPM operates primarily in two segments: Tissue Paper Products and Personal Care Products. Their performances in Q4 FY2025 diverged:

• Tissue Paper Products: This segment saw a 2.9% increase in revenue for Q4 FY2025, reaching RM145.7 million, driven by higher sales of jumbo rolls and paper core products. However, its loss before tax significantly widened to RM51.3 million from RM9.3 million in the corresponding quarter last year. The report explicitly states this increased loss was primarily due to unrealized foreign exchange losses, stemming from the consolidation of its Vietnamese and Singaporean subsidiaries due to diverging currency movements of United States Dollars, Vietnamese Dong, and Singapore Dollars against the Malaysian Ringgit.
• Personal Care Products: In contrast, this segment experienced a 5.8% decrease in revenue to RM70 million in Q4 FY2025, mainly due to lower sales of baby diapers. Despite the revenue dip, the segment’s profit before tax increased by a notable 58.3% to RM10.6 million, up from RM6.7 million in Q4 FY2024. This positive shift was primarily due to transactional gains on foreign exchange.

This highlights the different sensitivities of each segment to market conditions and currency fluctuations, with the personal care segment demonstrating resilience in profitability despite revenue challenges.

Financial Health and Dividends

As of 30 April 2025, NTPM’s total assets stood at RM1,083,432k, a slight increase from RM1,019,964k a year prior. Total equity saw a minor dip to RM500,214k from RM505,153k. Net assets per share remained stable at RM0.45.

Regarding shareholder returns, NTPM announced that a single-tier first interim dividend of 0.40 sen per ordinary share for the financial year ending 30 April 2025, amounting to RM4,492,160, was paid on 20 January 2025. It’s important to note that no dividend was proposed in the current quarter.

Risk and Prospect Analysis: Navigating a Volatile Landscape

NTPM acknowledges that the business operating environment remains highly challenging, influenced by a confluence of global factors. The report specifically points to geopolitical tensions, an evolving international trade framework, uncertain US Dollar movements, and dynamic shifts in global supply chains and the marketplace. These external pressures have clearly impacted the Group’s financial performance, particularly evident in the substantial unrealized foreign exchange loss of RM32.7 million incurred in FY2025.

In response, NTPM is focusing its strategy on sustainable business practices. This involves taking various measures to support its market position through competitive product offerings while diligently working to maintain profit margins. The company aims to maintain its revenue level in the coming quarter, provided there are no major adverse impacts from foreign exchange rate fluctuations and unforeseen circumstances. This cautious outlook reflects the ongoing volatility and the need for prudent management in the current economic climate.

What are your thoughts on NTPM’s performance this quarter? Do you believe their focus on sustainable business and competitive offerings will be enough to navigate the current challenging environment? Share your insights in the comments below!