PETALING JAYA: Magni-Tech Industries Bhd
, having posted earnings growth for both its second quarter (2Q25) and first half (1H25) of the financial year ending April 30, 2025 (FY25), remains cautiously optimistic about its outlook amid challenging market conditions.
In a filing with Bursa Malaysia, the producer of garments and packaging products stated that it remained focused on navigating the challenging operating environment, which includes a slow global economic recovery, supply chain disruptions in the Red Sea, and currency fluctuations.
“The group will remain focused on cost optimisation through automation, modernisation and process enhancements to stay resilient and relevant in our businesses,” it noted.
For the 2Q25 ended Oct 31, 2024, Magni-Tech’s revenue rose by 22% to RM350.83mil, driven by higher garment sales.
The garment segment posted a 24.1% revenue increase to RM330.35mil, attributed to stronger sales orders.
In contrast, revenue for the packaging segment fell 4.3% to RM20.47mil due to weaker demand.
Net profit for the quarter under review increased to RM25.87mil from RM21.79mil in 2Q24, supported by higher revenue and increased interest income from its garment segment.
For 1H25, Magni-Tech’s revenue surged 28.8% to RM788.42mil compared to RM611.98mil a year ago.
Revenue from the garment segment climbed 31.4% to RM747.30mil, offsetting a 5.4% decline to RM41.12mil in revenue for the packaging segment.
Net profit for 1H25 rose to RM70.51mil compared to RM54.51mil in 1H24.
This is driven by a 30.5% increase in the garment segment’s pre-tax profit to RM86.99mil, despite a higher net foreign- exchange loss of RM6.09mil.
The packaging segment’s pre-tax profit dropped 52.8%, impacted by reduced revenue, higher raw material costs and lower other income.
The garment segment remained Magni-Tech’s core business, accounting for 94.8% of the group’s total revenue and 98.1% of its profit from operations in the 1H25.
Magni-Tech declared a second interim dividend of three sen and a special dividend of 20 sen for 2Q25.
This brought the total dividend for 1H25 to 28 sen per share, compared to five sen in 1H24.
