KUALA LUMPUR (Oct 26): Muar-based ready-to-assemble furniture specialist Ecomate Holdings Bhd returned to the black in the second financial quarter ended Aug 31, 2022 (2QFY23), posting a net profit of RM1.58 million compared with a net loss of RM1.81 million a year ago, on higher revenue contributions from its domestic market, Europe and Australasia.

As a result, it posted earnings per share of 0.45 sen for 2QFY23 compared with a loss per share of 0.6 sen for 2QFY22.

Quarterly revenue jumped 103% to RM13.09 million from RM6.45 million in 2QFY22.

In a filing with Bursa Malaysia on Wednesday (Oct 26), Ecomate said the lower revenue in 2QFY22 was due to the group's operations being impacted by the implementation of the nationwide Full Movement Control Order.

The better quarterly performance lifted the group's net profit for the cumulative six months ended Aug 31, 2022 (1HFY23) to RM3.61 million, an over six-fold increase from RM590,0000 a year ago. Revenue rose 5.4% to RM26.62 million from RM25.25 million in 1HFY22.

On prospects, Ecomate expects it will continue to be profitable in the financial year ending Feb 28, 2023 (FY23).

"The group will focus on improving the efficiency of existing manufacturing activities and increasing manufacturing capacity to enable the group to take on opportunities arising from future demand."

Future prospects are favourable, it added, as the group aims to start construction of Factory C by the last quarter of 2023.

"Currently, our total annual production capacity is 475,200 units. Factory C is expected to increase our annual capacity to reach a combined manufacturing capacity of approximately 712,800 units.

"The group will continue to remain focused in our core business of design, manufacture and sale of home furniture products and continue to drive more research and development activities in enhancing our products to better suit the needs of our customers. The group will continue with their business plans and strive to develop new products, new designs in order to derive better cost efficiencies and effective cost management across all functions," said Ecomate.

In the shorter term, it said it may be able to benefit from the current uptrend of the US dollar as increased exports will boost the country's gross domestic product growth.

"The group will be taking steps to maintain sufficient liquidity to enable it to meet its liabilities as and when they fall due," it added.

Ecomate, which was listed on Bursa's ACE Market in November last year, settled unchanged at 80.5 sen on Wednesday, up 144% from its initial public offering price of 33 sen.

At 80.5 sen, Ecomate has a market capitalisation of RM280.03 million. Since the beginning of this year, the counter has risen 61%.