Property News

Ekovest sees positive full-year financial results after 3Q net loss narrows

KUALA LUMPUR (May 31): Ekovest Bhd (KL:EKOVEST) reported on Friday a smaller loss in its latest quarterly results compared with a year earlier despite still grappling with high finance costs. 
 The net loss for the group’s third quarter ended March 31, 2024 (3QFY2024) narrowed to RM11.11 million or 0.37 sen a share from RM15.86 million or 0.59 sen a share in 3QFY2023, Ekovest’s bourse filing showed.
Quarterly revenue meanwhile rose 39.19% year-on-year to RM306.46 million from RM220.18 million.
The group did not declare any dividend for the quarter under review.
For the first nine months of FY2024, the group said its net loss widened to RM58.09 million from RM15.45 million a year ago, despite revenue increasing 4.51% to M875.36 million from RM837.58 million. 
“The board remains optimistic in delivering positive financial results and is confident each of the group’s segments would contribute positively to the group’s performance for this financial year ending June 30, 2024,” added Ekovest.
In 3QFY2024, the group’s property development segment recorded lower revenue of RM4.41 million from RM15.27 million a year earlier, primarily due to lower sales concluded from its EkoCheras’s unit balance. 
Ekovest plans to launch its upcoming new property development, EkoTitiwangsa, by the next quarter after having finalised the financial requirement and the authorities’ submission.
The group’s toll operations segment registered higher revenue of RM124.87 million in 3QFY2024 from RM89.36 million a year earlier due to the increase in toll collections from the opening of the new SPE Highway on Nov 3, 2023. 
For the plantation segment, Ekovest recorded higher revenue of RM26.25 million against RM25.05 million in 3QFY2023, despite lower sales contribution from oil palm plantations and weaker commodity price for crude palm oil. 
This was also influenced by the decline in yield of oil palm estates and weaker margin for offtake of downstream durian products, through its subsidiary, PLS Plantations Bhd (PLS). 
“PLS will continue to work closely with its current and prospective business associates to improve the retail offtake rate of downstream durian products by offshore wholesalers and end consumers,” Ekovest said.
It added that the upstream investment in durian plantation will continue to be a mainstay of PLS to complement its existing downstream business while waiting for PLS’s durian farm to be matured and fruitful in three to four years.
Ekovest’s food and beverages division registered lower revenue of RM1.71 million for 3QFY2024 against RM2.88 million a year ago, after five outlets were closed to pave the way forward to a new approach in franchising and licensing.
Shares in Ekovest closed unchanged at 45 sen on Friday, giving it a market capitalisation of RM1.33 billion.
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Source: EdgeProp.my