Ecomate Holdings Bhd reported a 78.59% decline in net profit to RM258,000 for its In the third quarter ended November 30, 2023 (Q324) due to the decrease to lower revenue, higher operating costs, and the implementation of a 45-hour working week.
Revenue in the quarter fell 6.36% to RM12.33 million due to reduced sales volume in the domestic market and Australasia amid weakening furniture spending.
For the first nine months of FY2024, net profit dropped 71.84% to RM1.35 million, and revenue fell 13.77% to RM34.3 million.
Ecomate plans to focus on enhancing manufacturing efficiency, increasing capacity, and constructing a new factory in 2024.
Despite challenging export market conditions, the company anticipates potential recovery if the US reduces interest rates in 2024.
Ecomate's shares closed up 0.66% at 76 sen today, resulting in a market capitalisation of RM272.1 million.