Hello fellow investors and market enthusiasts!
ABLE GLOBAL BERHAD, a familiar name in Malaysia’s corporate landscape, has just released its unaudited quarterly report for the second quarter ended 30 June 2025. This report offers a fresh look into the company’s financial health and operational performance across its diverse business units. While the figures present a mixed picture with some segments facing headwinds, the overall resilience and strategic positioning, particularly within the Food and Beverage (F&B) division, certainly caught my eye. Notably, the Board has also declared a second interim dividend, a positive sign for shareholders!
Let’s dive into the details and unpack what this report truly means for ABLE GLOBAL and its future trajectory.
Core Financial Highlights: A Closer Look at ABLE GLOBAL’s Performance
The second quarter of 2025 presented ABLE GLOBAL with both opportunities and challenges. While overall revenue saw a decline compared to the same period last year, the company demonstrated a commendable ability to maintain its profit before tax.
Quarterly Performance: Q2 2025 vs. Q2 2024
In the latest quarter, ABLE GLOBAL recorded a revenue of RM164.62 million. This marks a decrease of RM14.59 million when compared to the RM179.21 million achieved in the corresponding quarter of 2024. Despite this, the company’s profit before tax remained remarkably stable at RM24.28 million, almost identical to the RM24.28 million reported last year. Profit attributable to owners saw a slight increase to RM17.97 million from RM17.945 million, leading to a marginal rise in basic earnings per share.
Q2 2025
Revenue: RM164.62 million
Profit Before Tax: RM24.28 million
Profit Attributable to Owners: RM17.97 million
Basic EPS: 5.84 sen
Q2 2024
Revenue: RM179.21 million
Profit Before Tax: RM24.28 million
Profit Attributable to Owners: RM17.945 million
Basic EPS: 5.83 sen
Year-to-Date Performance: H1 2025 vs. H1 2024
For the first six months of 2025, ABLE GLOBAL’s revenue stood at RM322.12 million, a decrease of RM28.34 million from RM350.46 million in the same period of 2024. Consequently, the year-to-date profit before tax also saw a modest decline of RM2.66 million, settling at RM42.58 million compared to RM45.24 million previously. Profit attributable to owners decreased to RM32.061 million from RM33.134 million, and basic earnings per share followed suit, decreasing to 10.42 sen from 10.77 sen.
H1 2025
Revenue: RM322.12 million
Profit Before Tax: RM42.58 million
Profit Attributable to Owners: RM32.061 million
Basic EPS: 10.42 sen
H1 2024
Revenue: RM350.46 million
Profit Before Tax: RM45.24 million
Profit Attributable to Owners: RM33.134 million
Basic EPS: 10.77 sen
Quarter-on-Quarter Improvement: Q2 2025 vs. Q1 2025
Looking at the sequential performance, ABLE GLOBAL demonstrated a positive turn. Revenue for Q2 2025 increased by RM7.12 million to RM164.62 million from RM157.50 million in the preceding quarter (Q1 2025). More impressively, profit before tax saw a significant jump of RM5.98 million, rising to RM24.28 million from RM18.30 million in Q1 2025.
This quarter-on-quarter growth suggests a strengthening momentum as the company progresses through the year, indicating effective management adjustments or a rebound in market conditions for certain segments.
Segmental Performance: A Mixed Landscape
ABLE GLOBAL’s operations are diversified across Investment Holding, Tin Manufacturing, Food & Beverage (F&B), and Property Development. Each segment contributed differently to the group’s overall performance:
| Segment | Q2 2025 Revenue (RM’000) | Q2 2024 Revenue (RM’000) | Revenue Change (RM’000) | Q2 2025 PBT (RM’000) | Q2 2024 PBT (RM’000) | PBT Change (RM’000) | Key Driver/Reason |
|---|---|---|---|---|---|---|---|
| Tin Cans Manufacturing | 21,010 | 32,010 | (11,000) | 1,460 | 5,130 | (3,670) | Lower sales in current quarter |
| Food & Beverage (F&B) | 140,830 | 147,200 | (6,370) | 23,360 | 19,410 | 3,950 | Weaker USD against MYR (negative on revenue, positive on costs) |
| Property Development | 2,790 | 0 | 2,790 | (210) | 150 | (360) | Higher progress costs for current quarter |
The Tin Cans Manufacturing segment faced a tough quarter, with both revenue and profit before tax declining significantly due to lower sales. Conversely, the F&B segment, while experiencing a revenue dip because of the weakened USD against the MYR, managed to significantly boost its profit before tax. This was attributed to lower costs, also a beneficial effect of the weaker USD. The Property Development segment saw increased revenue but recorded a loss, primarily due to higher progress costs.
Financial Health: A Snapshot
ABLE GLOBAL’s balance sheet as of 30 June 2025 shows a net asset per share of RM1.65, an improvement from RM1.56 at 31 December 2024. Total assets slightly decreased to RM783.935 million from RM832.998 million, while total equity strengthened to RM511.351 million from RM482.711 million. Total liabilities also decreased to RM272.584 million from RM350.287 million. Notably, cash and cash equivalents stood at RM150.015 million. The company also generated stronger net cash from operating activities at RM40.135 million year-to-date, compared to RM34.968 million in the corresponding period last year.
Shareholder Returns: Dividends Declared
The Board of Directors has declared a second interim dividend of 2.0 sen per ordinary share for the financial year ending 31 December 2025. This follows a first interim dividend of 1.75 sen per ordinary share, which was paid on 4 July 2025. This demonstrates ABLE GLOBAL’s commitment to returning value to its shareholders, even amidst varying market conditions.
Risks and Prospects: Navigating the Future
ABLE GLOBAL acknowledges the dynamic market environment and outlines its strategies for each segment:
Tin Cans Manufacturing Industry
The industry remains highly competitive. While steel prices are stable, the business environment is challenging. However, the company expects to maintain profitability through careful management.
Food & Beverage (F&B) Industry
Global demand for dairy products continues to be healthy. Raw material prices have been relatively stable this quarter, providing some relief. Despite potential volatility in commodity prices and foreign exchange due to global weather patterns and economic conditions, the F&B segment is expected to continue its profitable trend, leveraging its strong market position and cost management.
Property Development Segment
This segment holds significant long-term potential. The conversion of land on Carey Island from agricultural to industrial and commercial usage is a key strategic move. Once approved, ABLE Development Sdn Bhd plans to launch property sales. In the interim, the land generates passive income from palm oil harvesting. Furthermore, infrastructure work has commenced for the Kapar land, which is anticipated to contribute to future revenue.
Summary and Outlook
ABLE GLOBAL BERHAD’s second quarter report for 2025 paints a picture of a company navigating a complex economic landscape with mixed results across its divisions. While the tin cans manufacturing segment faced a slowdown due to lower sales, the F&B segment proved to be a robust performer, leveraging a weaker US Dollar to significantly boost its profitability despite a revenue dip. The property development segment, though currently experiencing higher costs leading to a loss, holds promising long-term potential with strategic land conversions and ongoing infrastructure development. The declaration of a second interim dividend underscores the company’s commitment to shareholder returns and its confidence in future earnings. Overall, ABLE GLOBAL appears to be strategically positioned, with its F&B segment providing a stable foundation while its property development arm matures into a future revenue driver.
Summary and Investment Recommendations
The report highlights ABLE GLOBAL’s ability to maintain overall profitability despite a decline in group-wide revenue, primarily driven by the robust performance of its F&B segment. The company’s strategic focus on cost management and leveraging currency fluctuations has been effective. The property development segment, though in its early stages of significant contribution, represents a key growth area for the long term. The declared dividend reinforces positive sentiment for shareholders.
Key points from the report that investors should consider:
- The F&B segment is a significant earnings driver, demonstrating resilience and improved profitability despite foreign exchange impacts on revenue.
- The Tin Cans Manufacturing segment faces competitive pressures and lower demand, which could impact its short-to-medium term performance.
- Property development is a long-term growth catalyst, with land conversion and infrastructure works underway, but immediate revenue contributions are sensitive to development progress and approvals.
- The company maintains a healthy financial position, evidenced by improved net assets per share and positive cash flow from operations.
- Consistent dividend payouts reflect a commitment to shareholder value.
ABLE GLOBAL has shown a mixed yet strategically positioned quarter. The F&B division continues to be a strong pillar, providing stability and growth, while other segments face their own set of challenges. The property development pipeline, though requiring patience, holds significant future promise.
What are your thoughts on ABLE GLOBAL’s ability to navigate these diverse market conditions and capitalize on its property development pipeline? Share your insights and perspectives in the comments section below!
