LB Aluminium posts impressive 62.67% rise in 4QFY2024 profits

LB Aluminium Bhd reported a significant increase in its net profit for the fourth quarter ended April 30, 2024 (4QFY2024). The company's net profit rose by 62.67 per cent, reaching RM9.43 million, compared to RM5.8 million in the same period last year.

Higher contributions from both the aluminium and property segments drove the impressive performance. Revenue for the quarter saw a robust 48 per cent growth, climbing to RM273.57 million from RM184.83 million in 4QFY2023.

This strong financial result underscores LB Aluminium Bhd's strategic execution and market resilience. It also sets a positive outlook for the ongoing fiscal year, instilling hope and confidence in the company's future.

Malaysia-headquartered LB Aluminium, grown to be one of the largest aluminium extrusion manufacturers in Asia, reported a significant increase in profit before tax (PBT) for its aluminium segment, reaching RM14.86 million from RM9.01 million, attributed to higher sales volumes, improved margins, and the reversal of impairment losses on trade receivables. In contrast, the property segment showed a PBT of RM1.73 million, compared to a previous loss of RM3.69 million, which included a significant impairment loss on investment in an associate during the fourth quarter of FY2023.

However, LB Aluminium's net profit for the full year decreased by 24.48 per cent to RM29.26 million from RM38.75 million in FY2023, primarily impacted by challenges in the aluminium segment. Despite this decline, the company's revenue for the year rose by 22.85 per cent to RM955.52 million from RM777.78 million.

Looking ahead, LB Aluminium noted challenges in its aluminium segment due to increased raw material costs amid global price volatility and a weak Malaysian ringgit against the US dollar. Despite these challenges, the weaker ringgit is expected to benefit the company's export margins, given that most export sales are denominated in US dollars.

The demand for aluminium is poised for significant growth in the coming years, primarily fuelled by an increasing preference for eco-conscious solutions across various sectors such as transportation, infrastructure, energy, and food security.

AL Circle's latest industry-focused report, "The World of Aluminium Extrusions - Industry Forecast to 2030", unveiled that in the post-pandemic era, the aluminium extrusion market rebounded in almost all regions, with global extrusion usage reaching an estimated 31.5 million tonnes in 2023. 

The global aluminium industry faces significant challenges stemming from geopolitical crises, economic slowdowns in major economies, and soaring energy prices. Aluminium extrusion demand is expected to increase over the next seven years. For more information, click here.