KUCHING: WTK Holdings Bhd plunged into the red in 1Q2025, reporting a net loss of RM21.4 million from a RM5.32 million profit a year ago, after a fire at its Penang tape factory disrupted operations.
Group revenue dipped slightly to RM156.6 million from RM159 million.
Loss per share stood at 4.58 sen (1Q2024: 1.14 sen EPS).
The January 17 fire at subsidiary Loytape Industries Sdn Bhd’s facility led to a 34 per cent revenue decline in the tape segment to RM12.1 million.
It recorded a pre-tax loss of RM22.5 million, mainly due to a RM22 million asset impairment.
WTK said it is pursuing insurance claims and working to minimise operational disruption, but remains cautious on the segment’s FY2025 outlook.
Despite the setback, the plantation and food segments showed resilience.
Plantation revenue rose 24 per cent y-o-y to RM80.1 million, with pre-tax profit up at RM11.76 million, driven by higher FFB production and prices.
The food segment saw revenue climb 34 per cent to RM33.83 million, lifting pre-tax profit 45 per cent to RM2.4 million, aided by new products and stronger market reach.
The timber segment, however, saw revenue slump 42 per cent to RM29.56 million due to the cessation of plywood operations and divestment plans.
Pre-tax losses widened to RM5.62 million.
Against the previous quarter (4Q2024), WTK narrowed its pre-tax loss to RM17.53 million from RM49 million, aided by stronger plantation and food contributions. Timber losses narrowed due to absence of prior impairments.
WTK expects plantations to drive future growth, with 83 per cent of its oil palms aged below 14 years.
The group is also banking on its expanding food business, supported by higher cold room capacity and new outlets.
It plans to streamline operations by exiting the timber business, citing weakening demand and rising certification costs.
“Divesting non-core timber assets allows WTK to focus on commercially sustainable and higher-growth sectors,” it said.
