KUCHING: WTK Holdings Bhd had chalked up remarkable earnings, with group net profit surged to about RM27.4 million in third quarter ended September 30, 2035 (3Q2025) from RM1.83 million a year ago, with strong contributions from the oil palm business.
However, group revenue dropped to RM130.8 million from RM167.6 million due mainly to the sharp decline in the turnover of the timber business following the disposal of two subsidiaries involved largely in logging operation and closure of plywood manufacturing plant.
The company’s earnings per share jumped to 5.85sen from 0.39sen previously.
In the current quarter under review, the plantation segment was the key revenue earner, generating RM83.4 million (3Q2024:RM78.9 million) (+6%), boosting the segment pre-tax to RM15.9 million (RM9.4 million) (+70%).
The food segment also performed well, evident by its revenue which climbed to RM31.4 million (RM24.4 million) and posted higher pre-tax profit of RM1.82 million (RM1.64 million).
The tapes segment recorded lower revenue of RM11.8 million (RM16.3 million) but reported sharply higher pre-tax profit of RM1.02 million (RM166,000).
The timber segment saw its revenue dived to RM3.33 million (RM47.2 million) but managed to significantly narrowed its pre-tax loss to RM102,000 (-RM2.48 million).
The others segment registered marginally higher revenue of RM834,000 (RM778,000) but its pre-tax profit soared to RM26.6 million (-RM2.53 million), thanks to the RM24.2 million gain from the disposal of timber subsidiaries. This segment is also involved in amusement and recreational activities and rental.
Reviewing the performance of the various segments, WTK said the plantation segment’s strong performance was attributed to higher selling prices of fresh fruit bunches (FFB).
The opening of new retail outlets, increased market penetration, a broader product range and increased consumer demand, especially for poultry and frozen products, drove the sales and profitability of the food segment.
WTK said the 28 per cent drop in the revenue of the tape segment was due to operational disruption caused by a fire incident at its manufacturing plant in Penang in January this year.
The timber segment’s sales plunged by 93 per cent year-on-year quarter due mainly to the cessation of the group’s plywood manufacturing plant in January this year, and the scaling down of logging operations after the recent disposal of logging subsidiaries. The small loss in 3Q2025 was mainly attributed to a RM0.4 million assets written off related to the disposed subsidiaries.
As compared to the immediate preceding quarter (2Q2025), WTK ‘s 3Q2025 financial results were a much improvement too. Quarter-on-quarter, group pre-tax profit shot up to RM31.9 million from RM17.5 million (2Q2025) despite drop in revenue from RM138.2 million to RM130.8 million.
The plantation segment revenue increased to RM83.4 million (2Q2025:RM78.7 million), driving pre-tax profit higher to RM15.9 million (RM11.2 million), thanks to the higher production volume and selling prices of FFB.
However, the food segment reported marginally lower sales of RM31.4 million (RM32.3 million) but its pre-tax profit climbed to RM1.82 million (RM1.21 million).
The tape segment revenue rose to RM11.8 million (RM10.8 million) but its pre-tax profit slipped to RM1.02 million (RM11.4 million) as the preceding quarter recognised RM13 million of insurance claims from the plant’s fire as income.
The timber segment reported sharply lower revenue of RM3.33 million (RM15.5 million) and incurred pre-tax loss of RM102,000 (+RM650,000) due to the close-down of the plywood manufacturing plant and scaling down of logging activities.
Over a nine-month period in 2025 (9m2025), WTK group net profit nearly tripled to RM23.4 million (9m2024: RM8.2 million) despite drop in revenue to RM425.5 million (RM500.9 million).
The plantation segment grew its revenue to RM242.2 million (RM218.5 million), pushing its pre-tax profit higher to RM38.8 million (RM27.95 million) whereas the food segment lifted its revenue higher to RM97.5 million (RM74.9 million), bolstering its pre-tax profit to RM5.43 million (RM4.82 million).
The tape segment sank into the red with pre-tax loss of RM10.1 million (+RM3.52 million) as revenue nosedived to RM34.7 million (RM49.9 million).
The timber segment reduced its pre-tax loss to RM5.1 million (-RM7.1 million) as its revenue plunged to RM48.4 million (RM154.4 million).
The other segment returned to the black with pre-tax profit soaring to RM22.2 million (-RMRM7.67 million) despite lower sales of RM2.65 million (RM3.2 million).
On the business prospects going forward, WTK said the plantation segment is anticipated to provide a strong support to the group’s growth following the completion of the acquisition of 100 per cent equity interest in Durafarm Sdn Bhd.
WTK expects the food segment to maintain a satisfactorily performance following the expansion of its cold room capacities, diversifying products offerings and opening of new retail outlets. It expects these developments to progressively strengthen the company’s market position across Sarawak.
However, the company is cautious about the outlook of its tapes segment following the fire incident and market competition.
“The timber segment has seen lower revenue in recent years due to softer market demand and stricter forestry regulations. The disposal of timber subsidiaries and cessation of plywood manufacturing operations are anticipated to improve the segment’s financial position. The group maintains a cautious outlook for the timber segment for FY2025,” said the Sibu-base company.
Currently, WTK said the group is undertaking a strategic realignment to focus on business segments with stronger commercial viability, sustainability and profitability.
“In light of the on-going challenges within the timber and tapes segments, the group will prioritise the plantation and food operations, which have demonstrated consistent growth in both productivity and profitability,” it said.
Barring any unforeseen circumstances, WTK is confident that the group will achieve satisfactory financial results for FY2025.
