The company achieved a 121.21% year-over-year revenue growth rate while maintaining a 19.63% operating margin, though gross margins of 36.26% remain highly sensitive to industrial utility fluctuations.
| Metric | Dec'24 | Dec'23 | Dec'22 |
|---|
| Sales/Revenue | 40.86M | 18.47M | 2.86M |
| Revenue Growth % | 121.21% | 544.8% | - |
| Cost of Goods Sold | 26.05M | 10.21M | 2.59M |
| COGS % of Revenue | 63.74% | 55.26% | 90.41% |
| Gross Profit | 14.82M | 8.26M | 274.71K |
| Gross Margin % | 36.26% | 44.74% | 9.59% |
| Gross Profit Growth % | 79.28% | 2908.07% | - |
| Operating Expenses | 6.8M | 1.94M | 473.67K |
| OpEx % of Revenue | 16.63% | 10.52% | 16.53% |
| Selling, General & Admin | 5.73M | 1.64M | 382.61K |
| SG&A % of Revenue | 14.01% | 8.85% | 13.36% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 1.07M | 307.37K | 91.05K |
| Operating Income | 8.02M | 6.32M | -198.96K |
| Operating Margin % | 19.63% | 34.22% | -6.95% |
| Operating Income Growth % | 26.86% | 3277.1% | - |
| EBITDA | 8.83M | 6.62M | -105.67K |
| EBITDA Margin % | 21.61% | 35.84% | -3.69% |
| EBITDA Growth % | 33.4% | 6365.49% | - |
| D&A (Non-Cash Add-back) | 812.41K | 299.43K | 93.29K |
| EBIT | 8.01M | 5.61M | -199.22K |
| Net Interest Income | -1.67M | -504.28K | -90.91K |
| Interest Income | 316 | 1.54K | 0 |
| Interest Expense | 1.67M | 503.21K | 90.65K |
| Other Income/Expense | -1.67M | -1.21M | -90.91K |
| Pretax Income | 6.35M | 5.11M | -289.87K |
| Pretax Margin % | 15.53% | 27.67% | -10.12% |
| Income Tax | 2.83M | 1.36M | 0 |
| Effective Tax Rate % | 44.65% | 26.53% | 0% |
| Net Income | 3.51M | 3.75M | -289.87K |
| Net Margin % | 8.6% | 20.33% | -10.12% |
| Net Income Growth % | -6.45% | 1395.22% | - |
| Net Income (Continuing) | 3.51M | 3.75M | -289.87K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 0.15 | 0.17 | -0.01 |
| EPS Growth % | -11.76% | 1428.13% | - |
| EPS (Basic) | 0.15 | 0.17 | -0.01 |
| Diluted Shares Outstanding | 23.82M | 23.82M | 22.57M |
| Basic Shares Outstanding | 23.82M | 23.82M | 22.57M |
| Dividend Payout Ratio | - | - | - |
Tight liquidity and working capital
According to the company's reported figures, AGRZ achieved a significant 121.21% year-over-year revenue growth, which suggests a successful scaling of its indoor vertical farming capacity and a rapid capture of premium retail shelf space within the competitive Malaysian urban food supply market.
This triple-digit growth rate indicates that the company is successfully transitioning from a pilot phase to a high-volume industrial supplier. Investors should monitor whether this trajectory is sustainable or if it reflects a temporary surge in retail penetration that may eventually face market saturation.
As reported in financial statements, the company maintains a 36.26% gross margin, a figure that appears highly sensitive to fluctuations in Malaysian industrial utility rates given the energy-intensive nature of the firm's proprietary indoor Controlled Environment Agriculture systems and automated irrigation infrastructure.
The current margin level suggests that the company has achieved some operational efficiency, yet it remains vulnerable to input cost volatility. Any upward pressure on electricity prices could compress these margins, as the firm lacks the pricing power of a commodity producer in the premium greens segment.
Based on AGRZ's reported figures, the firm demonstrates an operating margin of 19.63%, which suggests that management has successfully maintained administrative discipline while simultaneously executing a massive expansion of its physical farming footprint and distribution network across the Klang Valley region.
The ability to scale operating income alongside rapid revenue growth implies that the company's internal systems are currently handling the increased complexity well. However, it remains to be seen if this efficiency can be preserved as the corporate footprint expands further into new geographic territories.
Data from recent filings indicates that AGRZ operates with a precarious cash balance of only $390,500 against $40.8M in TTM revenue, a disparity that suggests a potential liquidity vulnerability if accounts receivable cycles lengthen or if unexpected operational disruptions require immediate capital deployment.
While the low debt-to-equity ratio of 0.37% is commendable, the thin cash cushion warrants significant caution regarding the company's working capital management. This structure may force management to seek dilutive financing or high-interest debt if they encounter any unforeseen operational hurdles in their high-growth phase.
Quick answers to the most common questions about buying AGRZ stock.
For fiscal year 2024, Agroz Inc. Ordinary Shares (AGRZ) reported total revenue of $40.9M. This represents a 1326.4% increase compared to $2.9M in 2022.
Agroz Inc. Ordinary Shares (AGRZ) is profitable, generating $3.5M in net income for the fiscal year ending 2024 with a net profit margin of 8.6%.
Agroz Inc. Ordinary Shares (AGRZ) reported an operating income of $8.0M, resulting in an operating profit margin of 19.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Agroz Inc. Ordinary Shares (AGRZ) generated $14.8M in gross profit for the year, representing a gross profit margin of 36.3%. This demonstrates the company's core pricing power and production efficiency.