KUALA LUMPUR: IJM Corporation Bhd announced a substantial rise in net profit for the financial year 2024 (FY24), achieving RM600.2 million, with all divisions except construction, reporting pre-tax profits, and manufacturing and quarrying divisions reporting record profits.
The group made a net profit of RM157.2 million in the previous year.
Additionally, IJM Corporation's revenue for the full year experienced a growth of 29.4 per cent, climbing to RM5.9 billion from RM4.5 billion.
"The group's construction and industry Divisions are witnessing encouraging prospects for order book replenishment."The improving outlook is also supported by continued strong property sales in FY24, increased cargo throughput at its Kuantan Port operations, and the final stages of restructuring its tollway concessions with the government," it said.
For the year, its construction division reported higher revenue of RM1,675.6 million, mainly due to increased construction activities during the period.
However, it reported a reduced profit of RM36.8 million for FY24, primarily due to losses recognised from three ongoing projects.
These losses were attributed to changes in work scope, increases in building material prices, and prolongation costs, while potential claims are still being pursued.
"Additionally, new projects undertaken are currently at their initial stages of construction, where no profit recognition is reported," it added.
The group also recorded pre-tax profits of RM366.8 million and RM964.2 million for the fourth quarter financial year 2024 (4QFY24) and FY2024 respectively, an increase of 136.3 per cent and 99.6 per cent as compared to the corresponding years.
IJM Corp group chief executive officer and managing director Lee Chun Fai said the strong financial performance in FY24 underscores its resilience and strategic execution across all business divisions. "The group remains focused on maintaining sustainable earnings and driving growth in the near term," he added.
Consequently, the company has announced a single-tier second interim dividend of 5 sen per share and a special dividend of 1 sen per share.
"Combined with the single-tier first interim dividend of 2 sen per share declared in the second quarter of FY2024 (2QFY24), the total dividend for FY2024 amounts to 8 sen per share, totaling RM280 million for the year," it said.
Lee said the dividend signal is supported by the strong financial performance and strategic initiatives.
"It underscores our confidence in IJM's future prospects and as we move forward, we will continue to focus on sustainable growth and creating long-term value for our stakeholders," he added.