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Supreme Consolidated Posts Strong 12% Revenue Growth in Q2 FY2025 on Festive Sales Surge
Supreme Consolidated Resources Berhad (KLSE: SUPREME) reported a resilient performance for the second quarter ended 31 March 2025 (“Q2 FY2025”), supported by higher sales of frozen and chilled food products during the festive season.
This translated into double-digit growth across revenue and profitability, while strong cash flow from financing activities and a dividend payout underscored the Group’s stable financial position.
Revenue for Q2 FY2025 rose by 12.0% year-on-year (YoY) to RM67.02 million, from RM59.82 million in the same quarter last year. This was largely driven by a RM10.1 million increase in sales from the Group’s core frozen and chilled food segment, which accounted for over 96% of total revenue. Gross profit rose in tandem by 12.1% to RM8.29 million, maintaining a gross profit margin of 12.36%, while Profit After Tax (PAT) increased by 14.3% to RM3.14 million.
For the first half of the financial year (“1H FY2025”), cumulative revenue stood at RM123.18 million, up 10.4% from RM111.63 million in 1H FY2024. PAT for the period reached RM5.50 million, marking a 15.8% YoY improvement, backed by higher revenue and improved operating margins. The gross profit margin for 1H FY2025 improved slightly to 12.46% compared to 12.25% previously.
From a quarter-on-quarter perspective, Q2 revenue increased by 19.3% compared to RM56.16 million in Q1 FY2025, while PAT surged by 32.5% from RM2.37 million. These improvements were largely attributed to seasonal demand, although ambient product sales moderated due to shipment delays.
On the cash flow front, the Group reported net cash generated from financing activities of RM19.27 million during 1H FY2025, primarily from the successful completion of its IPO which raised RM17.5 million in gross proceeds.
Of this, RM11.0 million has been earmarked for warehouse expansion, RM4.0 million for working capital (fully utilised), and RM2.5 million for listing expenses (also fully utilised). Meanwhile, net cash used in operating activities was minimal at RM0.09 million, with higher trade receivables offsetting otherwise healthy collections. The Group ended the quarter with cash and bank balances totalling RM18.06 million, and cash equivalents at RM17.63 million.
Reflecting confidence in its financial standing, the Board has declared a first interim single-tier dividend of 0.35 sen per ordinary share, amounting to RM1.51 million for the financial year ending 30 September 2025. The dividend will be paid on 30 June 2025, with an entitlement date set for 16 June 2025.
Looking ahead, Supreme remains optimistic on its growth outlook. The Group plans to expand its product range to align with evolving consumer needs, strengthen regional distribution, and enhance its agency portfolio by acquiring new brand partnerships.
Backed by a solid balance sheet and operational agility, Supreme is well-positioned to sustain its momentum in the second half of FY2025.
this stock is a good stock. if you read annual report continue to give dividend twice a year. Problem is market sentiment and sarawak related stocks not yet performed
