Leon Fuat Posts RM225.26 Million in Revenue for Q1 FY2024, with Profit Before Tax Growth of 59.2% to RM10.85 Million as Compared with Q4 FY2023

Commitment to Operational Efficiency and Financial Discipline Drives Continued Profitability

SHAH ALAM, 28 MAY 2024 – LEON FUAT BERHAD (“Leon Fuat” or the “Group”), a manufacturer and trader of steel products specialising in rolled long and flat steel, today announced the Group’s financial performance for the first quarter ended 31 March 2024 (“Q1FY2024”), demonstrating a keen focus on maintaining profitability despite a slight decline in revenue compared to the corresponding quarter of the preceding financial year (“Q1FY2023”).

For in the first quarter ended 31 March 2024 (“Q1FY2024”), Leon Fuat recorded a revenue of RM225.26 million, representing a decrease of 3.6% from RM233.70 million in the corresponding quarter of the preceding financial year (“Q1FY2023”). This decrease was primarily due to reduced revenue from both the trading and processing segments of steel products, which saw declines of 4.1% and 3.6% respectively.

Despite the revenue dip, Leon Fuat’s gross profit stood at RM27.52 million, a slight decrease of similar quantum of 3.6% from RM28.54 million in the corresponding quarter last year. The gross profit margin remained stable at 12.2% for the current quarter, contributing to a profit before tax (“PBT”) of RM10.85 million for Q1FY2024, compared to RM12.87 million in Q1FY2023.

In comparison with the immediate preceding quarter (“Q4FY2023”), Leon Fuat's revenue in Q1FY2024 decreased by 6.4% from RM240.57 million. However, the Group's gross profit improved by 18.3% to RM27.52 million from RM23.26 million in Q4FY2023, driven by a higher overall gross profit margin of 12.2%, up from 10.7%, as well as absence of inventories written down of RM2.43 million which was recorded in Q4FY2023 as certain inventories were measured at its estimated net realisable value. This period also saw a significant rise in PBT by 59.2% to RM10.85 million from RM6.81 million in Q4FY2023, highlighting the Group's effective strategies in enhancing profitability.

Calvin Ooi Shang How, Executive Director of Leon Fuat said, “Our financial results for Q1FY2024 reflect Leon Fuat's strategic adaptability and operational resilience in a challenging market environment. The consistent profit margins and improved gross profit compared with the immediate preceding quarter underscore our commitment to efficiency and financial discipline. As we continue to navigate the market dynamics, our focus remains on enhancing shareholder value and expanding our market footprint through strategic initiatives and capabilities. We are optimistic about our long-term prospects and remain dedicated to sustainable and strategic business practices.”

As at 28 May 2024, the share price of Leon Fuat is RM0.58, representing a market capitalisation of RM197.8 million.