Iconic Worldwide Berhad ("Iconic Worldwide" or "the Group"), a Bursa Malaysia-listed company primarily involved in tourism, property development and the manufacturing of personal protective equipment (PPE), returned to the black in the quarter ended September 30, 2024 ("Q1 2025"), reporting a net profit of RM1.92 million compared to a net loss of RM5.81 million a year ago. Q1 2025 revenue was RM12.32 million, up 61.53% from a year ago. 

The improved performance was driven mainly by strong market demand for Iconic Harmony, the Group's newly launched high-rise mixed development in Bukit Mertajam, Penang. Launched in April 2024, Iconic Harmony comprises residential and commercial components including 751 residential units and 16 shoplot units with an estimated gross development value (GDV) of RM270 million. The project has been a notable commercial success, achieving a 70% take-up rate within two days of its soft launch. Overall, the Group’s property development segment reported a net profit of RM1.38 million, compared to a net loss of RM0.3 million a year ago.

In addition, the Group’s profitability was aided by the turnaround of its manufacturing segment, which delivered a net profit of RM0.61 million. For perspective, the manufacturing segment had reported a net loss of RM7.97 million during the same financial period a year ago.

Dato' Seri Tan Kean Tet, Executive Chairman of Iconic Worldwide, said: 

"We are pleased to report notable progress on our turnaround journey, driven by strong market demand for Iconic Harmony, our latest property development, as well as the profitability of our manufacturing segment.

The success of Iconic Harmony speaks to the market's recognition of our strengths and capabilities as a real estate developer, and sets the foundation for even greater achievements in the future.

At our manufacturing segment, we have discontinued loss-making product lines, such as our glove production line. We are now fully focused on the manufacturing of profitable products such as diapers. This decision has paid off, and we expect this segment to be profitable moving forward. Additionally, we will lease out the larger of our two factories to external parties, creating a new revenue stream through rental income for the Group. We aim to secure a tenant for this factory by the first quarter of 2025.

From January 2025 onwards, we will be managing up to 200 units of the Iconic Regency, a serviced residence in Sungai Nibong. One of Penang’s tallest residential towers, the Iconic Regency building is located next to Iconic Marjorie, a five-star hotel under Marriott International’s Tribute Portfolio family. We expect the commencement of this management contract to strengthen the performance of our hospitality segment.

With our improved financial performance in Q1, we are positioned firmly on course for a turnaround in FY25.  

In line with our revamped strategic direction, we will continue to work towards fully realizing the potential of our property development and hospitality management businesses. While our property segment is likely to continue driving our financial performance in the near term, the strong recovery in travel and tourism has created opportunities for us to leverage our capabilities and sector-specific experience to undertake impactful hospitality developments in the future. We are exploring these opportunities closely, focusing on projects that will accelerate our growth and leave an indelible mark on the real estate industry."

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