KUALA LUMPUR: MAG Holdings Bhd remains excited over its aspiration to be among the top three players in Malaysia's aquaculture industry, executive chairman Stephen Ng said.
For the financial year ending June 30, 2022 (FY22), MAG posted a net profit of RM17.52 million, marking the second consecutive financial year of profit amid the strong demand for its aquaculture and food processing business.
Ng said the company would take advantage of the reopening of the economy and international borders to accelerate its growth.
"Going forward, we will focus on the aquaculture and food processing businesses as the main business drivers.
"The combined strength of our three farms, which are Wakuba Farm, Umas-Umas Farm, and Apas Parit Farm, will create economies of scale and synergy from cultivation to production of the finished products.
"By taking advantage of our farms' economies of scale and synergy, we expect to gain cost efficiency and higher production volumes and contribute meaningfully to the company's financial performance going forward," he said in a statement yesterday.
Meanwhile, MAG posted a net profit of RM17.52 million in the full FY22, on the back of a revenue of RM135.44 million.
No comparative financial information was available for the preceding year's corresponding period as the company changed its financial year end to June 30 from December 31.
It said the net profit recorded for the 12 months was mainly due to its aquaculture and food processing business contribution.
However, the company slipped into a net loss of RM2.39 million in the fourth quarter (Q4) despite recording revenue of RM60.49 million.
The losses were mainly due to the unrealised foreign exchange (forex) losses of RM6.8 million recorded during the quarter.
Excluding the unrealised forex loss, MAG would have had a record profit of RM4.4 million during the quarter under review.
"We are excited to continue with the turnaround story that has helped us turn profitable since FY21.
"For the full FY22, the company has maintained its growth trajectory with a net profit of RM17.5 million and revenue of RM135.4 million despite the challenging operating environment," Ng added.
MAG also improved its cash flow position, reflected by the improvement in its net cash generated from operating activities to RM44.9 million in FY22.