SANDAKAN: Life Water Berhad, a local beverage manufacturer has announced its financial result for its second quarter ended Dec 31, 2024 (Q2FY25) with steady revenue growth and continued operational expansion.
The Group recorded revenue of RM42.71 million in Q2FY25, driven by sustained market demand and product expansion. The beverage manufacturing segment contributed RM42.64 million or 99.8% of total revenue, while RM0.07 million was from plastic bottle and container sales. Drinking water remained the core revenue driver, generating RM36.06 million or 84.4% of total sales. Carbonated drinks and fruit drinks contributed RM6.46 million and RM0.12 million, respectively.
The Group achieved a gross profit of RM8.88 million, with a gross profit margin of approximately 49%, while profit after tax (PAT) stood at RM6.99 million, reflecting a PAT margin of 16.4%. Accounted in Q2FY2025 results was a one-off IPO expense of RM0.70 million incurred during the quarter.
For the six-month period ended Dec 31, 2024 (1HFY25), Life Water reported total revenue of RM85.30 million, with beverage manufacturing contributing RM85.19 million. The Group’s gross profit stood at RM17.84 million, with a gross profit margin of 48.3%, while PAT was RM14.49 million, representing a PAT margin of approximately 17%. Accounted in the 1HFY25 results was an amount of approximately RM0.91 million recognised as non-recurring one-off listing expenses. The 1HFY25 PAT after being adjusted for the listing expenses would be RM15.4 million, translating to an adjusted profit margin of 18.1%.
There are no comparative figures for the preceding year’s corresponding period as the Company was only listed on the Main Market of Bursa Malaysia Securities Berhad on 13 November 2024.
Managing director Liaw Hen Kong said: “The Group has reached a new milestone with the commencement of operations at our Keningau plant, increasing our total annual production capacity by 15% to 448 million liters. Additionally, we have begun setting up a new drinking water production line at our Sandakan Sibuga Plant 1, funded through IPO proceeds, to further scale production capacity in response to rising market demand. To optimise production capabilities, we are investing in two PET Preform Injection machines at our KK IZ8 Plant, with the first unit expected to commence operations in the first quarter of 2025 and the second in the second half of the year. This initiative, partially funded by IPO proceeds, will strengthen in-house bottle production, streamline costs, and enhance overall production efficiency, supporting our expanding manufacturing footprint.
From a financial perspective, we continue to maintain strong profitability while strategically reinvesting for future growth. With operational costs set to rise due to impending minimum wage adjustments, our proactive pricing strategies and efficiency initiatives will help sustain our margins. Supported by Malaysia’s expanding population, increasing consumer spending, and the continued recovery of Sabah’s tourism sector, we are well-positioned to capitalise on these positive market dynamics and drive long-term revenue growth.”
Life Water remains committed to long-term growth by leveraging expanded production capacity, and capitalising on favourable industry trends.
