Sagtec Global Limited Achieves 144% Growth in Revenue and 308% Profit Surge for 1H2025

Core Viewpoint - Sagtec Global Limited reported record-breaking financial results for the first half of 2025, demonstrating significant growth and resilience in its business model, particularly in the digital ecosystem of Malaysia [2][3]. Financial Results - Revenue for the six months ended June 30, 2025, reached US$11.4 million, a 144% increase from US$4.7 million in the same period of 2024 [3][6]. - Revenue from services increased by 107% to US$6.9 million, driven by strong client retention and demand for subscription-based solutions [7]. - Revenue from tangible products surged by 237% to US$4.4 million, primarily due to the rollout of food ordering kiosks and power bank charging stations [7]. - EBITDA grew by 205% year-over-year, from US$809 thousand to US$2.47 million, reflecting strong revenue expansion and operational efficiency [4]. - Net income rose 308% year-over-year to US$1.86 million, supported by improved gross margins and effective cost management [5][11]. - Gross profit increased by 173% to US$2.3 million, driven by robust demand and operating leverage [6]. Cost Structure - Cost of sales was US$9.1 million, a 137% increase from US$3.8 million, driven by higher business activity across services and tangible products [8][9]. - Cost of sales from services increased by 110% to US$6.2 million, attributed to higher infrastructure and maintenance costs [14]. - Expenses for tangible products rose by 242% to US$2.85 million, corresponding to increased sales of kiosks and charging stations [14]. Cash Position and Capital Allocation - Net cash used in operating activities was US$3.27 million, compared to a net inflow of US$674 thousand in the same period of 2024, primarily due to working capital movements [13]. - Net cash used in investing activities rose to US$3.56 million, reflecting investments in strategic assets and software licenses [15]. - Net cash generated from financing activities surged to US$7.20 million, driven by new share capital issuance and financing facilities [16]. - Cash and cash equivalents increased to US$454 thousand as of June 30, 2025, up from US$87.9 thousand at the beginning of the period, indicating improved capital management [17]. Company Overview - Sagtec is a leading provider of customizable software solutions, primarily serving the Food & Beverage sector, and also offers software development and data management services [18].