VARIA REPORTS Q3 FY2024 FINANCIAL PERFORMANCE WITH 169% GROWTH IN REVENUE

Significant Growth Driven by Construction Segment and Strategic Acquisition

KUALA LUMPUR, 22 FEBRUARY 2024 – Varia Berhad ("Varia" or the "Group"), an experienced player in the field of construction and property development, is pleased to announce a remarkable set of financial results for the third quarter of the financial year 2024 (“Q3 FY2024”), demonstrating significant year-on-year growth and a strong contribution from the newly acquired Pembinaan Teguh Maju Sdn. Bhd. (“PTM”). In a striking turnaround from the previous year’s corresponding quarter (“Q3 FY2023”), Varia’s revenue surged to RM42.1 million in Q3 FY2024, up by 169% from RM15.63 million in Q3 FY2023, showcasing the immediate positive impact of this acquisition.

The Group also reported a Profit Before Tax of approximately RM5.0 million, a substantial recovery from a Loss Before Tax (“LBT”) of RM10.8 million in the same period last year. This impressive growth has been primarily fuelled by the construction segment, with PTM playing a critical role.

The construction segment alone generated RM41.8 million in revenue and approximately RM9.0 million PBT. PTM, consolidated into Varia's financials from 1 November 2023, contributed 68.0% of the total revenue, amounting to RM29.1 million, and a profit before tax of RM8.5 million. Key projects such as Kem Bera, Perkeso, Kuarters Hospital Pulau Pinang (“KHPP”), Pulau Indah, and UDA, Penang were significant contributors to the gross profit of RM10.6 million for the quarter.

For the property development segment, Varia had seen maiden revenue contribution from Taman Arowana Phase 1 project, amounting to RM0.3 million in the current quarter, while the management strategies are to align the construction progress with sales, which are expected to expedite in revenue contribution in the upcoming quarters.

For the nine months ended 31 December 2023 (“9M FY2024”), Varia Berhad's revenue stood at RM82.5 million with a PBT of RM6.4 million, marking a substantial improvement from the revenue of RM33.7 million and a LBT of RM16.3 million in the corresponding period of the previous year (“9M FY2023”). This growth is attributed to the strategic acquisition of PTM and its significant contribution to the Group's financials.

Comparing the immediate preceding quarter (“Q2 FY2024”), Varia’s revenue increased by 106.0% to RM42.1 million, and profit before tax grew by 301.0% to RM5.0 million, highlighting the impactful integration of PTM into Varia's operations and the resultant financial uplift.

Datuk Benson Lau, Managing Director of Varia, remarked, "In the wake of our strategic transformation and the successful acquisition of PTM, Varia Berhad has demonstrated remarkable financial performance, underscored by our recent Q3 FY2024 results. These achievements reflect not only our capability to execute significant projects but also our foresight in aligning with industry trends. With the addition of high-impact projects like the Rancangan Tebatan Banjir Sungai Klang, and the steady progress in our property development segment, we are poised for sustained growth. We remain optimistic about Varia's future, driven by our strategic initiatives and the potential for further success in the vibrant Malaysian economic landscape."

As at 22 February 2024, 5:00 P.M., Varia’s share price is RM0.98 with a market capitalisation of RM408.7 million, while the orderbook of the Group remains strongly at RM1.1 billion.