KUALA LUMPUR: PGF Capital Bhd has achieved a total revenue of RM91.1 million in the financial year 2023 (FY23), which is an increase of 58.3 per cent year-on-year (YoY) from the previous year's revenue of RM57.6 million.
The Southeast Asia insulation producer said the notable increase was largely attributable to the higher volume of insulation products produced and sold during the financial year.
The company's net profit for the year came in at RM16.4 million, which is also a record high for PGF Capital.
Profit before tax for FY23 surged by more than eight folds YoY to RM24.5 million from RM3 million in FY22 in tandem with the jump in revenue.
The results also included a reversal of RM10.7 million impairment on development properties, which was partially offset by the elimination of an unrealised profit of RM3 million for goods in transit to its wholly-owned subsidiary in Australia.
Segmentally, the insulation and related products division continued to drive the bulk of revenue, having contributed 97.4 per cent to the company's turnover in FY23.
It is also the largest contributor to profit by comparison to property development as well as others, such as agriculture segments.
For the fourth quarter (Q4) of FY23, PGF Capital's net profit increased to RM5.3 million vis-à-vis RM0.9 million a year ago, after accounting for the abovementioned reversal of impairment loss that was partially set off by the elimination of the unrealised profit.
Higher sales volume pushed the company's total revenue 48.7 per cent higher YoY to RM25 million from RM16.8 million recorded a year ago.
The company has proposed a final tax-exempt dividend of 1.0 sen per share for FY23, subject to shareholders' approval at the upcoming annual general meeting.
Adding the first tax-exempt interim dividend of 1.0 sen paid in November 2022 brings the total dividend payout to 2.0 sen for FY23.
PGF Capital executive chairman Fong Wern Sheng said the company is delighted with its overall excellent financial performance for FY23, adding that the company's robust revenue and profit expansion reflected the improved business landscape following the Covid-19 pandemic.
"Operationally, whilst there are inflationary pressures, these are mitigated by lower ocean freight cost, allowing us to remain competitive in the market," he said in a statement today.
Fong said the company is working hard to sustain its growth trajectory and is broadly upbeat on its outlook.
The company expects rising demand for its products in anticipation of the enforcement of the National Construction Code and Building Code's revisions in Australia and New Zealand, respectively.
He noted that these revisions require more insulation to achieve higher energy efficiency ratings for their buildings, and this regulatory change will certainly benefit us.
"To cater to the growing insulation demand in the Oceanic region, we have set up warehouses in Brisbane and Melbourne, Australia, to improve our distribution infrastructure.
"With a stronger local presence in Australia, we can now provide swift delivery and better serve our customers," he said.
PGF Capital's balance sheet remained solid and lean with minimal net gearing of 0.07 times, backed by net assets per share of RM1.24 as at the end of FY23.
The company is exploring several development opportunities for the land whilst nurturing its agriculture, aquaculture and agrotourism activities to maximise the value of the land.