KUALA LUMPUR (Feb 21): Fiamma Holdings Bhd (KL:FIAMMA) said this year could be tough for the home appliance distributor from cost pressures, after a fivefold net profit jump in the final quarter of 2024 from accounting gain.

Ocean freight and raw material costs remain elevated, Fiamma said in an exchange filing. An expansion in sales-and-service tax covering repair and maintenance, warehouse management and logistics services have also raised operating expenses, the company said.

“Despite these challenges, the group remains focused on cost optimisation strategies, while strengthening its market positioning,” Fiamma said.

Net profit for the three months ended Dec 31, 2024 (4QFY2024) was RM23.26 million, versus RM4.03 million in 3QFY2024. The company booked RM13.41 million in fair value gain on investments during the quarter. Revenue, meanwhile, fell 10% quarter-on-quarter to RM88.62 million.

Fiamma did not provide a year-on-year comparison, as the company changed its financial year-end to Dec 31, from Sept 30. No dividends were declared.

For the whole of 2024, the company reported a net profit of RM39.82 million, on the back of RM374.99 million in revenue.

The company, which also has a property development business that contributes about 15% to revenue, said it expects completed and unsold residential and commercial properties to contribute to revenue this year.

“The proposed residential developments in Kuala Lumpur and Johor Bahru remain on track, with upcoming launches expected to enhance the group’s income stream upon sales realisation,” Fiamma said. However, the company did not provide any other details about the projects.