Dezign Format guides for lower FY2025 net profit on strategic growth spending and higher costs
Summary:
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Dezign Format expects FY2025 net profit to be lower than in FY2024, based on a preliminary review of draft unaudited consolidated results.
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Profitability was weighed down by intentional strategic spend on immersive location-based entertainment and experiences and proprietary IP development, as well as front-loaded setup costs for a new Malaysia manufacturing facility to expand capacity.
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Margins were affected by project mix and inflation, while revenue was slightly lower year on year and operating costs rose with headcount additions to support regional expansion.
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One-off IPO-related expenses and a tax under-provision were also recognised in FY2025, further depressing reported earnings.
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The company will release full FY2025 unaudited results on or before 26 February 2026 and advises shareholders and investors to exercise caution when dealing in its shares.