Executive Summary
Ritamix Global Limited delivered a resilient QQ4 2024 performance with topline expansion and a maintained gross margin in a volatile commodity environment. Revenue for the quarter stood at MYR 31.45 million, up 7.2% year over year, while gross profit reached MYR 6.689 million and gross margin remained solid at approximately 21.3%. Net income registered MYR 1.851 million, implying a net margin of about 5.88% and an earnings per share of MYR 0.0039. EBITDA was MYR 1.681 million, with an EBITDA margin of roughly 5.34% and operating margin around 4.54% (operating income MYR 1.427 million). The quarter benefited from a lean cost structure, but earnings were tempered by working capital dynamics and limited operating cash flow, as CFO was negative by MYR 1.75 million and free cash flow was negative by about MYR 1.1925 million.
The balance sheet remains robust with a substantial net cash position. Total cash and short-term investments stood at MYR 95.072 million against total debt of MYR 1.892 million, yielding a net debt position of MYR -58.429 million. Liquidity metrics are favorable: current ratio 3.97 and quick ratio 3.05, underscoring short-term financial strength. However, the company reported negative operating cash flow driven largely by working capital movements (notably receivables and inventories), signaling an opportunity to optimize working capital conversion to cash flow from operations.
Valuation metrics reflect a mature, cash-rich profile for a small-cap producer in the Consumer Defensive/Animal Nutrition space (P/E ~27.8, P/S ~6.5, P/B ~1.53). The dividend payout ratio of about 16.1% alongside a modest dividend yield (as reported) provides some income appeal, but the stock’s current valuation may imply modest growth optionality rather to the margin and cash-flow trajectory. Management commentary on the call (where available) would be central to confirming execution plans, particularly around cost control, procurement strategies, and potential capacity expansion. Given the sector dynamics, Ritamix appears to be solid on balance sheet strength with room to improve cash conversion, while revenue growth is commendable but earnings quality will hinge on working capital efficiency and cost discipline.
Key Performance Indicators
Key Insights
Revenue (MYR): 31,450,000 for Q4 2024; YoY growth 7.20%; QoQ growth 0.00%. Gross Profit: 6,689,000; Gross Margin: 21.27%; YoY Gross Profit growth 0.41%; EBITDA: 1,681,000; EBITDA Margin: 5.34%; Operating Income: 1,426,500; Operating Margin: 4.54%; Net Income: 1,850,500; Net Margin: 5.88%; EPS: 0.0039; EPS Diluted: 0.0039; Weighted Avg Shares: 470,386,375. Key leverage and liquidity indicators are: Current Ratio 3.97; Quick Ratio 3.05; Cash Ratio 1.529; Net Cash (Debt) Position: -58,429,000; Tota...
Financial Highlights
Revenue (MYR): 31,450,000 for Q4 2024; YoY growth 7.20%; QoQ growth 0.00%. Gross Profit: 6,689,000; Gross Margin: 21.27%; YoY Gross Profit growth 0.41%; EBITDA: 1,681,000; EBITDA Margin: 5.34%; Operating Income: 1,426,500; Operating Margin: 4.54%; Net Income: 1,850,500; Net Margin: 5.88%; EPS: 0.0039; EPS Diluted: 0.0039; Weighted Avg Shares: 470,386,375. Key leverage and liquidity indicators are: Current Ratio 3.97; Quick Ratio 3.05; Cash Ratio 1.529; Net Cash (Debt) Position: -58,429,000; Total Assets: 174,886,000; Total Liabilities: 41,182,000; Total Equity: 134,665,000; Cash and Short-Term Investments: 95,072,000; Cash and Cash Equivalents: 60,321,000; Inventory: 36,160,000; Net Receivables: 24,582,000; Total Debt: 1,892,000; Debt to Equity: 0.014; P/E: 27.79; Price to Sales: 6.54; Price to Book: 1.53; Dividend Payout: 16.09%; Dividend Yield: 0.145 (reported).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
31.45M |
7.20% |
0.00% |
| Gross Profit |
6.69M |
0.41% |
0.00% |
| Operating Income |
1.43M |
-48.16% |
0.00% |
| Net Income |
1.85M |
-37.03% |
0.00% |
| EPS |
0.00 |
-37.10% |
0.00% |
Key Financial Ratios
operatingProfitMargin
4.54%
dividendPayoutRatio
1609%
Management Commentary
Not available: The provided data set does not include an earnings call transcript. Consequently, no management quotes or transcript-driven highlights can be extracted.
Forward Guidance
There is no explicit forward guidance published in the QQ4 2024 results. In our assessment, the key drivers for 2025–2026 are: (1) demand stability for animal feed additives and premixes in Malaysia and neighboring markets; (2) ability to optimize working capital to convert more earnings into cash flow, given the negative operating cash flow in Q4 2024; (3) potential cost containment and procurement strategies to maintain or improve margins in a commodity-sensitive environment; (4) currency dynamics for MYR in cross-border supplier and customer relationships; (5) any capacity expansion or product-line diversification that could lift sales and leverage fixed costs. Management may consider targeted investments to reduce working capital cycles or to expand distribution reach. Achievability of guidance will hinge on successful execution of procurement efficiency, channel expansion, and cost controls in the face of input cost volatility.