KUCHING: WTK Holdings Bhd
has staged a major turnaround and is back to the pink of financial health after ceasing loss-making plywood manufacturing and scaling down on non-profitable logging operations.
The company returned to profitability for the financial year ended Dec 31, 2025 (FY25), with a net profit of RM38.6mil on revenue of RM577.1mil after languishing in losses for six consecutive years since 2019. The company recorded a loss of RM43.2mil on revenue of RM671.9mil in FY24.
For the fourth quarter (4Q25), the company reported a net profit of RM15.2mil, a reversal from a loss of RM51.4mil in 4Q24 despite a drop in revenue to RM151.6mil from RM171mil, mainly due to the sharp fall in the turnover of the timber segment to RM2.5mil from RM49.5mil because of the cessation of plywood manufacturing operation and sales of logging subsidiaries.
The timber segment’s pre-tax loss was cut to RM9.5mil (inclusive of RM5.1mil assets written off related to the cessation of plywood manufacturing operations) from a loss of RM33.3mil year-on-year.
WTK exited the plywood manufacturing in January 2025, which was part of its core business for decades, after disposing non-performing wholly-owned timber subsidiaries involved in logging, sales of logs and timber products.
Last September, the company sold Piramid Intan Sdn Bhd for RM16mil and Immense Fleet Sdn Bhd for RM24.35mil, followed by the sale of Song Logging Company Sdn Bhd for RM23.5mil in December. According to WTK’s management, the timber segment experienced declining revenue over recent years due to soft market demand and stricter operational requirements related to timber certification, which reduced the financial viability.
“The group is shedding the loss-making timber business to improve profitability and better allocate resources towards segments with long-term growth porspects.
“This streamlines the group’s focus on commercially sustainable and profitable plantation and good segments.
“As part of the group’s strategic alignment, the timber segment represents a non-core business and will be reclassified under other segment from FY26 onwards,” said WTK when releasing its 4Q25 results last Thursday.
In recent years, cash-rich WTK made substantial investments in oil palm plantations. The company expects to complete proposed acquisitions of Imbok Entetrprise Sdn Bhd and Desacorp Sdn Bhd, and a 70% stake in WTK Oil Mill Sdn Bhd for a total of RM555mil in cash in 2Q26 after obtaining the approval of shareholders at an EGM on Jan 29.
The acquisitions of Desacorp (100%) and Imbok (70%),which owns oil palm estates, will raise the company’s total oil palm planted area by 14,389 ha or 82.6% to 31,810 ha, according to WTK chairman Tan Sri Sulong Matjeraie.
Upon completion of the deals, WTK will be able to capitalise on a favourable age profile to support rising future yields, with 45.9% of the trees in prime maturity and mature age, and 49% in immature and young mature age.
He said this expansion aligns with the company’s long-term strategy of strengthening its footprint in the plantation sector (including upstream oil palm plantation activities and palm oil mill operations), which has become a core revenue driver.
Last year, WTK forked out another RM188.7mil to acquire 100% equity interest in Durafarm Sdn Bhd, which owns 5,041 ha of plantation land, of which 4,137 ha was fully planted and 747 ha under development for replanting.
The expanded oil palm estates has increased the company’s fresh fruit bunch (FFB) production and boosted the oil palm segment’s revenue to RM97.2mil in 4Q25 from RM76.8mil in 4Q24, and generated RM18.4mil in pre-tax profit from pre-tax loss of RM9.2mil in 4Q24, which was mainly due to the impairment and written off of property, plant and equipment of RM19.8mil from a hilly oil palm estate with a lower FFB yield from soil erosion.
On the food segment, WTK has begun to reap the fruits of its investment to expand the cold room capacity, opening of new retail outlets, increased market penetration and a broader product range, especially for poultry and other frozen products.
In 4Q25, the food segment’s revenue jumped by 32% to RM39.4mil (4Q24: RM29.8mil), driving its pre-tax profit higher at RM2.13mil (RM1.17mil). “The group will be scaling up the food segment for next-phase growth by expanding the product range and customer base with a target to grow more retail outlets across Sarawak.”
