KUCHING: WTK Holdings Bhd has returned to profitability with group net profit of RM38.6 million on revenue of RM577.1 million in financial year ended December 31, 2025 (FY2025) after losing money for six straight years since 2019.
In FY2024, WTK incurred group net loss of RM43.2 million on sharply higher revenue of RM671.9 million.
In the current financial year, WTK reported earnings per share of 8.25sen against losses per share of 9.24sen in 2024. The company has declared higher dividend of 1.5sen, up from 1sen in 2024.
In recent years, WTK’s financial results had been impacted by the dismay performance of its timber business. As part of the group’s strategic transformation exercise for a turnaround, WTK ceased its loss-making plywood manufacturing operation in January 2025 and scaled down on non-profitable logging operations to stop the bleeding.
The move has begun to bear fruits as the group losses in the timber segment had been significantly reduced to about RM9.5 million in 4Q2025 (4Q2024:-RM33.3 million) as revenue plunged to merely RM2.45 million (RM49.45 million) due to the cessation of plywood making activities and disposal of logging subsidiaries during the year under review.
The logging subsidiaries sold from September to December period were Piramid Intan Sdn Bhd for RM16 million, Immense Fleet Sdn Bhd for RM24.35 million and Song Logging Company Sdn Bhd for RM23.5 million, all in cash.
In 4Q2025, WTK returned to the black with group net profit of RM15.2 million from huge loss of RM51.4 million in 4Q2024 as revenue was down to RM151.6 million from RM171 million year-on-year. Pre-tax profit stood at RM26.2 million from pre-tax loss of RM49 million during the period of comparison. Earnings per share was 3.25sen from losses per share of 10.99sen.
For the current quarter, group revenue fell by RM19.4 million (11%) due to lower sales of the timber and tapes segments.
Group pre-tax profit was boosted by the plantation segment as it posted pre-tax profit of RM18.4 million against loss of RM9.2 million in 4Q2024.
In the current quarter, the plantation segment was the biggest revenue earner, generating higher turnover of RM97.2 million (4Q2024:RM76.8 million) boosted by the higher production volume of fresh fruit bunches (FFB) from newly acquired oil palm estates.
The food segment also improved its performance with sales expanded to about RM38 million (RM28.8 million) as a result of the opening of new retail outlets, increased market penetration, a broader product range, and a rise in consumer demand, particularly for poultry and other frozen products, WTK said in explanatory notes to its financial results. .
The tapes segment, however, reported lower revenue of RM12.2 million (RM15.1 million), or down by 19 per cent as its manufacturing plant in Penang was affected by a fire incident which caused disruptions to its operation.
The others segment saw its pre-tax loss worsened to RM22.2 million (-RM10.2 million) despite its revenue shot up to RM1.81 million (RM872,000). The revenue included dividends received from subsidiaries.
As compared to the immediate preceding quarter (3Q2025), WTK chalked up an increase in revenue by RM20.8 million (16%) to RM151 million (3Q2025:130.8 million), attributed to the higher contribution from the plantation segment. However, the group pre-tax profit fell by RM5.7 million to RM26.2 million (RM31.9 million) due to the higher losses in the timber segment because of the write-off of RM5.1 million in assets related to the cessation of plywood manufacturing operation in current quarter.
The plantation segment recorded both improvements in revenue and pre-tax profit to RM97.2 million and RM18.4 million respectively (3Q2025:RM83.4 million and RM15.9 million respectively) whereas the food segment saw its revenue and pre-tax profit surged to RM38 million and RM2.13 million respectively (RM31.4 million and RM1.82 million respectively) due to higher demand of frozen food from consumers during year end.
Although the tapes segment revenue increased marginally to RM12.2 million (RM11.8 million), its pre-tax profit was down sharply to RM256,000 (RM1.02 million) due to lower margins on tapes and related products from price competition and unrealised foreign exchange loss resulted from the appreciation of the ringgit against US dollar.
The others segment reported a write-off of RM5.8 million relating to assets no longer in use.
Commenting on prospects for the new financial year, WTK said the group is embarking on expansion of its plantation segment as the proposed acquisition of WTK Oil Mill Sdn Bhd, Imbok Enterporise Sdn Bhd and Descorp Sdn Bhd will significantly increase its total oil palm planted area to 31,809.9 hectares from 17,420.6 hectares. These assets will be acquired for a total of RM555 million in cash, and the proposed acquisitions are expected to be completed in 2Q2026.
“Upon completion, the group will be able to capitalise on a favourable age profile (of the oil palms) to support rising future yields, with 45.9 per cent of palms in prime mature and mature age, and 49 per cent in immature and young mature age. The proposed acquisitions are earnings accretive and will be consolidated in the group’s financial statements in 2Q2026,” said the company.
On the food business, WTK said the group will be scaling up for the next-phase growth by expanding product range and customer base, with a target to grow more retail outlets across Sarawak,
WTK said the group remains cautious on the tape segment’s performance as it continues to facer price competition, and is implementing cost control measures to strengthen the segment’s outlook.
For the timber segment, WTK said:” The group is shedding loss-making timber businesses to improve profitability and better allocate resources towards segments, with long-term growth prospects.
“This streamlines the group’s focus on commercially sustainable and profitable plantation and food segments. As part of the group’s strategic alignment, the timber segment represents a non-core business and will be reclassified under others segment from FY2026 onwards,”
Barring any unforeseen circumstances, WTK group is confident of delivering satisfactory financial results in FY2026.
