Glomac's 4Q net profit falls 84% on higher taxation

• Quarterly revenue rose 20.17% year-on-year to RM74.94 million from RM62.36 million, mainly driven by its property development segment, supported by the commencement of revenue recognition from new ongoing projects.

KUALA LUMPUR (June 24): Glomac Bhd's (KL:GLOMAC) net profit dropped 84.16% to RM2.41 million for its fourth quarter ended April 30, 2025 (4QFY2025) from RM15.24 million a year earlier, mainly due to higher taxation.

Pre-tax profit for the quarter declined to RM12.07 million from RM19.82 million previously, amid lower finance income and higher administrative expenses, while taxation doubled to RM9.88 million from RM5.27 million, according to the property developer's bourse filing.

Quarterly revenue rose 20.17% year-on-year to RM74.94 million from RM62.36 million, mainly driven by its property development segment, supported by the commencement of revenue recognition from new ongoing projects.

The group declared a final dividend of 1.25 sen per share.  This follows an interim dividend of 1.0 sen per share paid on Dec 30, 2024, bringing total dividend payout for the full year to 2.25 sen per share, up from 1.25 sen in FY2024.

Glomac said its full-year net profit declined 33.81% to RM15.62 million from RM23.59 million in FY2024, mainly due to higher taxation and lower revenue.

The full year pre-tax profit was RM33.43 million, up from RM32.85 million in FY2024. Taxation for the year rose to RM18.22 million from RM10.40 million.

Full-year revenue declined 10.94% to RM238.34 million from RM267.62 million in FY2024, mainly due to reduced development activities and the completion of several property projects in the preceding year.

Glomac said given the uncertainties over the ongoing geopolitical backdrop and the expansion of sales and service tax in Malaysia, the group remains cautious over construction costs and market sentiment.

However, the group said it is planning new launches with a total estimated gross development value (GDV) of RM324 million, consisting of landed residential properties. Key upcoming projects include two new phases of double-storey terrace houses at Serai@SBCR and a new phase of semi-detached homes at KEYS, Lakeside Residences.

Glomac has also strengthened its capital structure through its sukuk wakalah programme, which provides a funding capacity of up to RM3 billion. Supported by strategically located landbanks with an estimated future GDV of RM6 billion, the group said it is well-positioned to capitalise on future growth opportunities and expand its development footprint.

Shares of Glomac closed half a sen or 1.6% higher at 32 sen on Tuesday, valuing the group at RM256 million. The counter has declined 17.95% year to date.

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