Press Metal Sees 4% Dip in Q2 Profit, Declares 2 Sen Dividend

Last updated on August 23, 2025

Press Metal Aluminium Holdings Bhd reported its second-quarter results for the period ended 30 June 2025, posting a 6% year-on-year revenue growth to RM4.19 billion from RM3.95 billion in 2Q FY2024. The increase was largely driven by higher sales volume during the quarter.

However, higher raw material costs—stemming from inventory purchased at elevated prices—along with reduced contributions from associates and increased taxation, weighed on earnings. As a result, profit after tax and minority interests (PATAMI) slipped 4% to RM483.6 million.

For the cumulative first half of FY2025, revenue rose 7% to RM8.09 billion, while PATAMI edged up 3% to RM945.3 million. In tandem with the results, Press Metal declared a second interim dividend of 2.0 sen per share, payable on 29 September 2025.

Group Chief Executive Officer Tan Sri Paul Koon noted that market sentiment remains cautious amid macroeconomic uncertainties, despite easing trade tensions. He highlighted that US tariff adjustments remain a key concern for global demand, though aluminium demand has continued to grow modestly year-on-year, supported by supply constraints and stable metal prices.

“Lower raw material prices are positive for our smelting operations,” Koon said. “While the impact of tariffs on US inflation and consumer demand is still uncertain, demand has been underpinned by renewable energy applications and just-in-time inventory replenishment. Looking ahead, potential US rate cuts and government stimulus may spur optimism for global growth.”

He added that aluminium’s unique properties—lightweight, corrosion resistance, thermal and electrical conductivity, and heat dissipation—position it as a vital material for renewable energy, artificial intelligence, and data centre industries, which are expected to be key demand drivers moving forward.