Carzo Holdings Berhad will be ceasing from its core business of fresh fruit distribution in view of the consecutive net losses recorded by the Group for the financial years ended 30 June 2023 and 30 June 2024 of RM18.89 million and RM6.55 million, respectively with overall negative cashflow position of RM0.56 million as well as capital deficiency of RM12.08 million recorded as at 30 June 2024.
The management said it has been taking the necessary steps to address its capital deficiency and cashflow position via focusing on costs saving measures to reduce its operational expenses such as scaling down the business of distribution and retailing of a variety of fresh fruits as well as disposed of identified fixed assets to improve the cashflows of the Group since July 2024. However, despite the effort to improve the financial position the Board noted that the scaling down of operational activities to a certain extent has helped the Group to keep its operating cost at the minimal level, but the limited supplies of fresh fruits to customers as a result of cashflow constraints have led to significant loss in sales of fresh fruits which have impacted its fruit distribution business in the last few months.
Hence, the Board further noted that the management's effort to turn around the business was no pun intended was not fruitful due to unsustainable revenue generated in the past few months.
Carzo has 9 months to find a core business under the Bursa regulation, however if the group fails to find one it will have to withdraw from the market.
