KUALA LUMPUR: Citaglobal Bhd recorded a 224% jump in profit before tax to RM10.3 million from RM3.2 million, on the back of a 55% increase in revenue to RM94.1 million for its fourth quarter (Q4) ended December 31, 2024 (FY24).
In tandem, its net profit for the period jumped 452% to RM6.73 million from RM1.22 million.
Citaglobal’s stellar Q4 results were driven by strong contributions from the civil engineering and construction (CEC), property, and manufacturing segments.
This enabled the group’s subsidiary, Citaglobal Engineering Services Sdn Bhd (CESSB), to exceed its three-year profit guarantee of RM60 million.
It was also Citaglobal’s single best quarterly performance over the last 31 quarters.
On a cumulative basis from its financial year (FY), which ended 31 December 2022 (FY22) to FY24, CESSB has achieved total profits after tax of more than RM60 million.
With the company on a stronger footing, Citaglobal is also declaring its maiden and final dividend of 1 sen for FY24.
Meanwhile, for FY24, Citaglobal’s profit before tax increased 80% to RM24.9 million, and its net profits increased to RM14.9 million.
This was due to a 42% increase in revenue to RM291.7 million. Thus, earnings per share increased to 3.54 sen from 2.30 sen the previous year.
CESSB is a wholly owned subsidiary of Citaglobal, which was acquired by the latter in Nov 2022.
For some history, the RM60 million profit guarantee resulted from an acquisition made by Citaglobal.
On June 15, 2022, Citaglobal entered into a share purchase agreement to acquire CESSB from TIZA Global Sdn Bhd (TIZA), a company controlled by Tan Sri (Dr) Mohamad Norza Zakaria.
CESSB was acquired through the issuance of 6.84 million shares at 19 sen per share.
This acquisition came with an aggregate net profit guarantee of RM60 million for the three financial years ending 2022, 2023, and 2024.
This acquisition was completed on November 10, 2022.
This deal also resulted in TIZA and Mohamad Norza becoming the controlling shareholders of Citaglobal.
When asked about the future outlook of the company, Citaglobal chairman and president Mohamad Norza said the company is pleased to have achieved the three-year profit guarantee that he personally promised to shareholders.
“Achieving these numbers goes beyond the financials.
“It shows our integrity, commitment and perseverance in keeping our word. I would say the most difficult part is now over.
“To show our sincerity to shareholders, we would like to reward them with a maiden and final dividend of 1 sen.
“As many would know, Citaglobal is now in a transitory phase, and we are looking to make strong inroads into the renewable energy and telecommunication sectors.
“We remained committed to disciplined execution, seizing high-growth opportunities, and reinforcing our leadership position. With strong fundamentals, a clear vision, and a well-diversified portfolio, Citaglobal is well positioned for long-term success,” Mohamad Norza said.
The group is embarking on various opportunities to improve the contributions from the energy and CEC segments by instituting several initiatives, including acquisition-driven growth, and is actively tendering for projects to strengthen the financial performance further.
Citaglobal is capitalising on the growing demand for waste-to-energy (WTE) and environmental management solutions, focusing on sustainable infrastructure.
This aligns with Malaysia’s green economy initiatives and global circular economy goals.
On January 3, 2025, Citaglobal acquired German WTE technology and engineering company LAWI Engineering GmbH (LAWI Germany).
It has completed more than 50 power plant projects with a 100% success rate over the last three decades in Southeast Asia, Korea, and Europe.
As of December 31, 2024, the group has an outstanding order book of RM1.1 billion, while the property segment has an estimated gross development value of RM471 million.
