LB Aluminium Bhd's Q1 net profit doubles, revenue reaches two-decade high

LB Aluminium Bhd (KL), headquartered in Malaysia, reported a significant surge in its first-quarter net profit, which doubled year-on-year. This was driven by stronger performances in its aluminium and property divisions.

According to its filing with Bursa Malaysia, for the quarter ending July 31, 2024 (1QFY2025), the company posted a net profit of RM8.86 million, a substantial increase from RM4.32 million in 1QFY2024.

The group’s revenue soared 35.9 per cent to RM279.76 million, marking its highest in two decades. The aluminium segment saw a 23 per cent revenue jump to RM184.9 million, up from RM150.3 million, attributed to increased sales volumes and higher selling prices. Meanwhile, the property division also performed strongly, with revenue rising to RM94.9 million from RM55.6 million, supported by higher sales and construction progress in key projects, including the Satu Anggota Satu Rumah (SASaR) initiative and PSV 1 Residences @ Platinum South Valley in Bandar Tasik Selatan, Kuala Lumpur.

LB Aluminium’s robust results reflect the continued growth momentum in its core business segments, positioning the group for further expansion.

The company anticipates that strengthening the ringgit against the US dollar will reduce input costs for aluminium billets, which are predominantly purchased in USD. However, it noted that this may also affect sales revenue, as most of its sales are priced in the same currency.

The report said that global aluminium prices remain volatile due to uncertainties in trade policy. The company said, "We will continue to monitor our operational costs and selling prices to preserve our margins."

LB Aluminium expects continued positive contributions from both the SASaR and PSV 1 Residences projects as sales and construction activity gain momentum. Concerning profitability, the company remains cautiously optimistic for the next quarter.