SCIB achieves significant revenue growth amid market challenges
- SCIB reported a revenue increase of 14.5% for Q1 FY2025, reaching RM45.1 million.
- The Manufacturing division contributed RM32.5 million to the overall revenue, driven by sales of IBS products.
- The company remains optimistic about its future prospects in Malaysia's construction sector.
In Malaysia, Sarawak Consolidated Industries Berhad (SCIB) has announced its unaudited financial results for the first quarter of fiscal year 2025, showcasing impressive growth despite market volatility. The company achieved a revenue of RM45.1 million for Q1 FY2025, reflecting a 14.5% increase compared to the RM39.4 million reported in the same quarter the previous year. This growth is attributed primarily to the increased recognition of construction work from ongoing projects, emphasizing the resilience and strength of SCIB in navigating challenging market conditions. SCIB's Manufacturing division remains a crucial contributor to the overall revenue, generating RM32.5 million, which is a 9.8% increase from RM29.6 million in Q1 FY2024. The performance of this segment was bolstered by heightened sales of foundation piles and Industrialised Building System (IBS) products, particularly for significant projects such as the Kuching Urban Transportation System, the Sarawak Second Trunk Road, and various school construction endeavors. In contrast, the Construction/Engineering, Procurement, Construction and Commissioning (EPCC) division reported a revenue of RM12.6 million, up from RM9.8 million year-on-year. However, this segment also faced challenges, recording a Loss Before Tax of RM2.0 million attributed to an unanticipated unrealized foreign exchange loss. Despite this loss, SCIB remains committed to strengthening its financial foundation and expanding its project portfolio, demonstrating the company’s strategic focus on aligning its offerings with the fundamental needs of the Sarawak market. Recently, SCIB has successfully acquired two parcels of land in Bintulu for residential housing projects, further diversifying its product and service offerings. As Malaysia's construction sector shows optimism due to a record allocation in Budget 2025 of RM421 billion, including RM86 billion for development, SCIB is strategically positioned to leverage its manufacturing capabilities, ensuring sustainable growth and long-term value for its stakeholders. The company expresses confidence in its operations moving forward, focusing on effectively addressing market needs while enhancing its product offerings and services.