Varia Reports Strong Q2 FY2024 Results, with Revenue up 156% to RM20.47 Million
Group's strategic PTM Acquisition and Rebranding Marks a New Growth Chapter
KUALA LUMPUR, Nov 23, 2023 - (ACN Newswire) - Varia Berhad ("Varia" or the "Group"), an experienced player in the field of construction, property investment, and property development, heralds a new era with a substantial upswing in Q2 FY2024 financial performance and strategic corporate developments. The Group's transformative steps include the acquisition of Pembinaan Teguh Maju Sdn Bhd ("PTM") and a dynamic rebranding to Varia Berhad.
Datuk Benson Lau, Managing Director of Varia
In Q2 FY2024, Varia Berhad recorded a substantial increase in revenue and profit. Revenue surged by 156% to RM20.47 million, with a profit before tax (PBT) of RM1.24 million, representing an impressive turnaround from the previous year's loss in the same quarter. This surge in financial performance is primarily attributed to the construction segment's success, with notable contributions from the Serendah project, Medical City UPM, and the UDA Penang project.
Over the first six months of FY2024, Varia Berhad achieved a revenue of RM40.42 million and a PBT of RM1.43 million, representing a 124% and 145% increase respectively compared to the corresponding period in the previous year. The construction segment has been the main driver of this significant growth.
Compared to the immediate preceding quarter, the Group saw a revenue increase of 3% and a substantial profit before tax increase of 549%. These figures underscore the consistent and robust performance of the construction segment.
For information, the Group’s EGM on 2 November 2023 had received blessings from the shareholders for the acquisition of PTM, a pivotal development for Varia Berhad. This acquisition, valued at RM380.0 million, introduces PTM's RM1.16 billion in outstanding orders and potential contracts worth approximately RM1.78 billion into the Group's portfolio. PTM's commitment to a profit guarantee of RM120.0 million over the next three financial years further strengthens Varia's market position.
Datuk Benson Lau, Managing Director of Varia, expressed his enthusiasm: "The outstanding financial results of Q2 FY2024 signal a transformative era for Varia Berhad, one marked by strategic acumen and robust growth. Our successful rebranding, coupled with the pivotal acquisition of PTM, demonstrates not just a milestone but a leap forward in our ambitious growth journey. These developments are a testament to our shareholders’ deep trust and belief in our vision and strategic direction.”
He added, “As we celebrate this remarkable quarter, our focus remains steadfast on capitalising on the synergies brought by PTM, further diversifying and strengthening our construction and property development segments. We are more committed than ever to drive innovation, excellence, and sustainability in our operations, ensuring sustained growth and reinforcing investor confidence. The future for Varia Berhad is bright, and we are excited to embark on this journey with the unwavering support of our shareholders and dedicated team."
As at 23 November 2023, 5:00 P.M., Varia Berhad’s share price is RM1.04 with a market capitalisation of RM431.0 million.
