How Did GLG Corp Cut Its Losses While Closing a Key Manufacturing Plant?
GLG Corp Ltd reported a reduced net loss of USD 1.35 million for FY2025, improving margins and operational efficiency despite a slight revenue decline. The company closed its Malaysian manufacturing plant and foresees challenges ahead in FY2026.
- Net loss narrowed to USD 1.35 million from USD 3.69 million in FY2024
- Revenue declined slightly to USD 110.5 million
- Gross profit margin improved from 15.6% to 17.0%
- Closure of Malaysian manufacturing plant with associated asset disposals and retrenchment costs
- No dividends declared; cash flow from operations strengthened; borrowings reduced
Financial Performance Highlights
GLG Corp Ltd has reported a notable improvement in its financial results for the year ended 30 June 2025. The company reduced its net loss after tax to USD 1.35 million, a significant improvement from the USD 3.69 million loss recorded in the previous year. This progress comes despite a modest decline in revenue, which fell from USD 116.6 million in FY2024 to USD 110.5 million in FY2025.
The improved bottom line was driven by a higher gross profit margin, which increased from 15.6% to 17.0%. Management attributes this to enhanced capacity management and streamlined production processes that boosted operational efficiency. Additionally, other income rose to USD 1.0 million, supported by one-off insurance compensation and government grants.
Operational Restructuring and Cost Management
A key strategic move during the year was the closure of GLG’s manufacturing facility in Malaysia. This decision led to asset disposals valued at USD 4.8 million and retrenchment expenses of approximately USD 108,000. The closure also contributed to a 17.8% reduction in inventory levels, as production was consolidated in Cambodia and outsourcing increased.
Cost control measures were evident in the 2.6% reduction in administrative expenses, primarily due to manpower cost savings. Finance costs fell by 27.7%, reflecting lower interest rates and reduced borrowings, while other expenses dropped by 33.1%, partly due to the absence of one-off impairments that impacted the prior year.
Balance Sheet and Cash Flow Developments
GLG’s balance sheet showed signs of strengthening, with borrowings declining by 20.6% to USD 26.1 million, supported by improved cash management and loan repayments. Trade and other receivables increased by 13.8%, driven by higher transaction volumes post-plant closure. Meanwhile, cash flow from operating activities improved to USD 2.6 million, up from USD 1.8 million in FY2024, despite a slight decrease in cash and cash equivalents to USD 10.4 million.
The company did not declare any dividends for FY2025, consistent with the prior year, reflecting a cautious approach amid ongoing restructuring and market uncertainties.
Looking Ahead – Challenges and Opportunities
GLG’s directors acknowledge that FY2026 will present headwinds, including uncertain trading conditions and potential tariff changes that could impact costs and supply chains. However, they remain cautiously optimistic that possible reductions in bank interest rates and further operational efficiencies will help offset these challenges.
Investors will be watching closely to see how GLG navigates these external pressures while leveraging its streamlined operations and improved cost structure.
Bottom Line?
GLG’s FY2025 results reflect a company in transition; improving efficiency and cutting losses but facing an uncertain external environment that will test its resilience in the year ahead.
Questions in the middle?
- How will tariff changes and global trade conditions impact GLG’s supply chain and margins in FY2026?
- What further cost-saving or restructuring initiatives might GLG pursue to return to profitability?
- Will GLG consider reinstating dividends once financial stability is restored?
