Samurai 2K Aerosol, which sells aerosol paint, has reported higher revenue for FY2025 but due to inventory that has to be written off because of a fire last year, it reported a loss of RM7.8 million, reversing from FY2024's earnings of RM1.54 million.
Revenue for FY2025 ended March jumped 31.4% y-o-y to RM104.9 million thanks to better sales in its largest market Indonesia, followed by its home market Malaysia.
However, the company's FY2025 bottom line had to take into account inventory worth RM12.7 million written off after a fire last May, plus damages to property, plant and equipment worth RM3.54 million. In addition, it incurred forex losses of RM2.96 million.
In an update announcement on May 28, after the close of the last FY, Samurai 2K Aerosolsays its insurer will pay RM16.06 million on an indemnity basis. The claim was initially denied.
The company will also be entitled to an additional claim of around RM1.79 million in the event the damaged properties "are reinstated in compliance with certain conditions and timeline".
The claims will be recognised in the current FY2026.
See also: Grand Venture Tech reports 1QFY2025 earnings of $2.6 mil, up 27.7% y-o-y
Despite the FY2025 losses, the company plans to pay a dividend of 0.34 cents per share. It did not pay a dividend for FY2024.
Samurai 2K Aerosol warns that it operates in a "competitive and fast-changing industry" amid an uncertain global economy.
Going forward, it will actively strengthen its market presence, enhance marketing effectiveness through data-driven and customer-centric approaches, and tighten cost control to preserve operational efficiency and profitability.
Samukra 2K Aerosol shares closed at 9.6 cents on May 30, up 6.67% for the day and up 37.14% year to date.
