Focus Lumber Berhad (FLB) recorded a net loss of RM8.7 million ($1.85 million) in Q4 2024, more than doubling the RM3.8 million ($810,000) loss from Q4 2023. Despite the loss, revenue rose 32% to RM27 million ($5.75 million), driven by higher production and increased sales volume of plywood, veneer, and laminated veneer lumber (LVL). However, weaker production recovery rates and higher log prices widened the company’s losses.

Full-year production saw a 36% increase in sales volume, contributing to a 50% rise in revenue to RM90 million ($19.2 million). The company’s manufacturing segment remained the key revenue driver, generating RM90 million ($19.2 million), while its electricity segment contributed RM4,000 ($850). FLB reported a gross loss of RM11.1 million ($2.36 million) for the year, impacted by a scheduled major overhaul of its power plant, increased raw material costs, and provisions for slow-moving stock.

Market conditions remain challenging, with the weaker US dollar affecting export revenue, company said in its report. However, FLB expects demand recovery in 2025, supported by stronger US housing and RV sectors. The company is also planning to adjust its average selling price upward to mitigate currency impacts. Additionally, the switch to grid electricity from SESB in June 2024 is expected to lower production costs moving forward.