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Rhone Ma Q2 2025 Report: Profit Climbs Despite Revenue Dip, Food Ingredients Segment Shines
Published: [Date of Blog Post]
Rhone Ma Holdings Berhad, a significant player in Malaysia’s animal health and food ingredients sectors, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a fascinating story of strategic margin improvement and resilience. While overall revenue saw a slight dip, the company managed to post impressive growth in profitability, driven by a remarkable turnaround in its Food Ingredients division. Let’s dive into the numbers and see what they tell us about the company’s health and future direction.
Core Financial Highlights: A Tale of Two Trends
At a glance, the top-line figures might seem modest. However, the real story lies in the company’s ability to enhance profitability. This quarter, Rhone Ma demonstrated strong operational efficiency, particularly in managing costs, which directly boosted its bottom line.
Q2 2025 (Current Quarter)
Revenue: RM 54.98 million
Gross Profit: RM 17.66 million
Profit Before Tax: RM 5.15 million
Net Profit (to owners): RM 3.46 million
Earnings Per Share (EPS): 1.56 sen
Q2 2024 (Previous Year’s Quarter)
Revenue: RM 56.43 million
Gross Profit: RM 13.66 million
Profit Before Tax: RM 4.72 million
Net Profit (to owners): RM 2.71 million
Earnings Per Share (EPS): 1.23 sen
Despite a 2.6% decrease in revenue, Rhone Ma’s Profit Before Tax (PBT) grew by a healthy 9.1%. Even more impressively, the net profit attributable to shareholders surged by over 27%. The report attributes this strong performance primarily to improved gross profit in the food ingredients segment, thanks to lower material costs.
Segment Performance: The Star of the Quarter
A deeper look into the business segments reveals where the growth came from. While the core Animal Health division saw a slight contraction in revenue and profit, the Food Ingredients segment staged a powerful recovery, turning a loss into a solid profit.
Segment | Revenue (Q2 2025) | Revenue (Q2 2024) | Profit Before Tax (Q2 2025) | Profit Before Tax (Q2 2024) |
---|---|---|---|---|
Animal Health Products & Equipment | RM 45.93 million | RM 46.57 million | RM 4.54 million | RM 6.00 million |
Food Ingredients | RM 7.36 million | RM 8.10 million | RM 0.996 million | (RM 1.48 million) |
The Food Ingredients division was the clear hero this quarter. Its swing from a RM1.48 million loss to a nearly RM1 million profit more than compensated for the softer performance in the Animal Health segment, highlighting the benefits of a diversified business model.
A Commitment to Shareholder Returns
Dividend Declared!
In a sign of confidence and commitment to its shareholders, the company approved a final single-tier dividend of 1.0 sen per ordinary share for the financial year ended 31 December 2024. This dividend was paid on 14 July 2025, rewarding investors for their continued support.
Risks and Future Outlook
Rhone Ma is optimistic about the future, citing strong global trends in both its key markets. The global animal health industry is set for sustained growth, driven by demand for advanced veterinary care and preventive solutions like vaccines and supplements. Similarly, the food ingredients market is expanding, fueled by consumer demand for safe, functional, and ethically sourced food products.
To capitalize on these trends, the company is not standing still. It is actively investing in the future, with key initiatives including:
- Strategic Investments: The company is involved in a joint venture to develop a large-scale dairy project in Johor and has committed RM3.55 million towards establishing its own milk processing plant.
- Innovation Focus: Management emphasizes a commitment to research and development to stay ahead of industry shifts and meet evolving market demands for sustainable and cutting-edge solutions.
However, investors should remain mindful of potential challenges. The performance of the core Animal Health segment will be crucial to watch, as will the company’s ability to manage volatile raw material costs, which, while beneficial this quarter, could pose a risk in the future. The successful execution of its new dairy-related projects will also be key to unlocking long-term value.
Summary and Investment Recommendations
Rhone Ma’s Q2 2025 results paint a picture of a resilient and strategically agile company. It successfully navigated a slight revenue decline by significantly improving its profitability, showcasing strong cost management. The turnaround in the Food Ingredients segment is a major positive, while its investments in the dairy sector signal a clear ambition for future growth. The company’s financial position has strengthened, with higher cash reserves and increased net assets per share. (Note: The following points are for informational purposes only and do not constitute investment advice. Please conduct your own due diligence.)
- Sustaining Margin Growth: Can the Food Ingredients segment maintain its newfound profitability and continue to drive group earnings?
- Core Business Performance: Keep an eye on the Animal Health division to see if it can return to growth in the coming quarters.
- Execution of New Ventures: The progress of the Jemaluang dairy project and the new milk processing plant will be critical catalysts for the company’s long-term story.
- Market Dynamics: The company’s ability to navigate industry competition and manage raw material cost fluctuations remains a key factor.
Final Thoughts
Rhone Ma Holdings Berhad has delivered a commendable quarter, proving it can grow profits even when revenue is flat. The strategic focus on improving margins and investing in high-potential new ventures like the dairy industry is promising. The key for investors will be to monitor whether this quarter’s success is the start of a new trend.
What are your thoughts on this report? Do you think Rhone Ma can maintain this growth momentum in the next few years? Share your views in the comments below!
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