KUALA LUMPUR (Oct 15): Furniture manufacturer Eurospan Holdings Bhd (KL:EUROSP), which reported a fivefold surge in its first quarter net profit thanks to gains from property and investment disposals, has cautioned that it expects a more challenging business environment for the financial year ending May 31, 2025 (FY2025).

This is because the global market remains uncertain with the persisting Israel-Hamas conflict and the Russia-Ukraine war, as well as global inflation, it said in a bourse filing Tuesday.

The group made a net profit of RM23.34 million for its 1QFY2025 ended Aug 31, 2024, over five times the RM4.13 million it made in 1QFY2024. Revenue dropped to RM5.8 million from RM6.89 million.

The group's 1QFY2025 bottomline would have been in the negative if not for the disposal gains that amounted to RM27.84 million, which came from the sale of Dynaspan Furniture Sdn Bhd and Eurospan Furniture Sdn Bhd's properties.

Eurospan declared a dividend of 20 sen per share for the quarter.

While it expects a more challenging business environment ahead, the group said it will continue its efforts to mitigate any potential impact on its operating results.

Shares in Eurospan closed at a record high of RM2.06 on Tuesday after climbing 33 sen or 19.08%, although only 191,400 shares changed hands. The latest share price gave the company a market capitalisation of RM91.51 million. Year-to-date, the stock has appreciated 42.07%.