MGB Berhad reports strong with 23 per cent cent revenue increase

MGB recorded a revenue increase of 22.57 per cent, amounting to RM217.88 million compared to the same quarter of the previous year.

SHARIFAH SHAHIRAH
16 May 2024 08:43pm
MGB Factory - Photo by MGB Berhad's Management
MGB Factory - Photo by MGB Berhad's Management
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SHAH ALAM - MGB Berhad, a subsidiary of LBS Bina Group Berhad and a provider of construction and property development solutions, announced its first quarter financial results for the fiscal year ending on 31 December 2024 (“Q1FYE2024”) today.

During the reviewed quarter, MGB recorded a revenue increase of 22.57 per cent, amounting to RM217.88 million compared to the same quarter of the previous year.

The significant revenue growth was primarily attributed to a nine-fold increase in revenue from the property development segment, reaching RM87.59 million. This surge in revenue was chiefly driven by increased sales and advancements in the development of projects such as Idaman Melur, Idaman Cahaya Phase 1 and Phase 2, Idaman Sari, and Saujana Indah Phase 1.

Tan Sri Ir (Dr) Lim Hock San
Tan Sri Ir (Dr) Lim Hock San

Commenting on the financial performance, MGB Group Executive Chairman Tan Sri Ir (Dr) Lim Hock San expressed delight in announcing commendable first-quarter results as the new year begins.

“With a steadfast commitment to excellence and unwavering dedication from MGB’s team, we have managed to set a solid foundation for the year ahead.

"This remarkable performance is a testament to our strategic vision and relentless pursuit of operational efficiency and cost optimisation.

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“Our IBS (industrialised building system) precast concrete products have reduced construction time at worksites substantially by 33 per cent and improved consistency of our construction process," he said.

Lim further highlighted that IBS has successfully reduced their overhead costs and improved the quality of their precast concrete products by prefabricating them in a controlled factory environment.

With their first international order received for the supply and installation of precast concrete products for 400 villas in the prestigious Roshn Alarous project in northern Jeddah in February 2024, they are now prepared to showcase their competency in manufacturing and deploying IBS precast concrete technology.

He added that they are optimistic their tried and tested IBS precast concrete products will deliver the desired quality that their customers expect, thereby solidifying their reputation in the region.

The construction and trading segment remains the primary revenue generator for the Group, representing 59.8 per cent of Q1FYE2024 revenue, while the property development segment accounted for the remaining 40.2 per cent.

As revenue increased, the Group reported a profit before tax and profit after tax of RM20.59 million and RM15.11 million, marking a 28 per cent and 23 per cent year-on-year increase, respectively.

This growth was propelled by nearing completion of the BSP Idaman and KITA Mekar projects, alongside cost-saving initiatives implemented by the Group.

“As at April 30 2024, MGB’s construction order book remained healthy at RM1.19 billion, while our property development unbilled sales totalled RM0.74 billion,” he added.

MGB Logo - Photo by MGB Berhad's Management
MGB Logo - Photo by MGB Berhad's Management

Lim said looking ahead, they are poised for continued growth and success. With a strong pipeline of projects, a solid financial position, and a talented team driving innovation and excellence, he is confident in their ability to deliver exceptional value and achieve new milestones in the quarters to come.

Additionally, he stressed their conscious efforts to balance their ESG commitment and integrate these core principles into their business model.