Varia Berhad, a well-known name in construction and property development, recently announced its financial results for the fifth quarter of the financial year 2024 (Q5 FY2024), which covers the fifteen-month period ending on June 30, 2024.
This period marks a transition as the Group changed its financial year-end to June 30, allowing for a more comprehensive view of its performance.
For Q5 FY2024, Varia Berhad achieved a revenue of RM84.9 million, representing a notable 29% increase from the RM65.8 million recorded in the previous quarter (Q4 FY2024).
This growth is a testament to the Group’s robust operations and effective management. The Group’s gross profit also experienced a healthy rise, increasing by 25% to RM9.58 million compared to RM7.69 million in Q4 FY2024.
However, the quarter was not without its challenges. Varia reported a Loss Before Tax (LBT) of RM7.2 million, a significant shift from the Profit Before Tax (PBT) of RM2.0 million seen in the previous quarter.
This loss was mainly due to the amortisation of intangible assets, a lingering issue from the acquisition of Pembinaan Teguh Maju Sdn. Bhd. (PTM), and increased financing costs.
When comparing year-over-year, Varia’s performance in Q5 FY2024 is particularly impressive. The Group recorded RM84.7 million in revenue, marking a massive 325% increase from the RM19.9 million reported in the same quarter of the previous year.
This dramatic rise in revenue is largely attributed to the acquisition of PTM, which has been instrumental in driving the Group’s financial growth. However, the Group also faced a one-time amortisation expense related to PTM, resulting in a deferred tax charge of RM8.0 million on intangible assets, contributing to the LBT of RM7.2 million.
Over the fifteen-month period ending June 30, 2024, Varia Berhad achieved a total revenue of RM233.2 million, representing a remarkable 694% increase from the RM29.4 million earned during the twelve-month period ending March 31, 2023 (FY2023).
This substantial growth was fueled by the contributions from PTM, which played a central role in boosting the Group’s financial performance. During this period, Varia’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) reached RM18.3 million, a significant improvement from the loss of RM8.8 million in the previous financial year.
Additionally, the Group managed to achieve a PBT of RM1.2 million, a positive turnaround from the LBT of RM10.81 million in FY2023.
Varia’s construction segment continues to be the main revenue driver, with PTM contributing RM231.7 million to the Group’s total revenue over the fifteen-month period.
Significant projects like Perkeso, Pulau Indah, and Taiga played a key role, delivering gross profits of RM4.9 million, RM3.2 million, and RM0.8 million, respectively. The property development segment also showed positive momentum, with the Taman Arowana Phase 1 project generating RM1.4 million in revenue.
Datuk Benson Lau, Managing Director of Varia, expressed optimism about the Group’s future, saying,
“The results for this extended reporting period highlight the resilience and strength of our core operations, particularly the significant contributions from PTM.
Despite the challenges posed by past issues related to the amortisation of intangible assets, our solid revenue growth and improved EBITDA underscore our ability to navigate these obstacles effectively.”
With a strong order book exceeding RM2.24 billion as of August 27, 2024, Varia is well-positioned to continue its growth. The Group remains focused on securing high-value contracts, enhancing operational efficiencies, and delivering robust results to its stakeholders.
Looking forward, Varia Berhad is cautiously optimistic about its growth prospects. The Group has secured over a billion ringgit in new contracts in the past month alone.
Noteworthy projects include the RM555.0 million “Projek Menaiktaraf Loji Rawatan Kumbahan Serantau” in Penang, a RM61.5 million contract for constructing educational facilities at Universiti Pendidikan Sultan Idris in Perak, and the RM410.3 million “Rancangan Tebatan Banjir Sungai Muar” project in Johor. These strategic wins are expected to positively impact the Group’s financial performance in the coming years.
Varia Berhad is determined to maintain its momentum by focusing on securing high-value contracts and improving operational efficiencies, ensuring strong results for its stakeholders.
About Varia Berhad
Initiated with the purpose of creating a sustainable legacy, Varia Berhad (formerly known as Stella Holdings Berhad) has been a vanguard in investment holding since its inception on the Main Market of Bursa Malaysia Securities Berhad on 17 November 1998.
Through the years, the Company has ventured into critical domains crucial for nation-building, including but not limited to construction, property investment, and property development.
For more information, visit https://www.varia.com.my/
