East 33 Ltd - Preliminary Financial Report for FY2024
EAST 33 LIMITED.. (E33) Share Update August 2024 Tuesday 27th
East 33 Ltd Reports 27% Decline in Net Profit for FY2024
East 33 Ltd (ASX: E33) has reported a significant decline in its financial performance for the fiscal year ended 30 June 2024. The company experienced a 27% drop in net profit, primarily driven by decreased revenue and increased expenses.
Instant Summary:
- Revenue from ordinary activities decreased by 6% to $23.14 million.
- Net profit after tax attributable to members fell by 27% to a loss of $11.65 million.
- No dividends were declared during the financial period.
- Basic and diluted earnings per share remained at -$0.020.
Financial Performance
East 33 Ltd reported a revenue decline of 6% from ordinary activities, totaling $23.14 million for the fiscal year ended 30 June 2024. This decrease in revenue significantly impacted the company's profitability, leading to a net loss of $11.65 million, down 27% compared to the previous fiscal year.
The company's earnings per share (EPS) remained unchanged from the previous year at -$0.020, reflecting the ongoing financial challenges. The weighted average number of ordinary shares used in the calculation of basic and diluted EPS increased to 571,996,323 from 449,634,289 in the previous year.
Operational Highlights
East 33 Ltd's operations were marked by several key challenges and developments:
- Revenue from ordinary activities decreased by 6% to $23.14 million.
- Net profit after tax attributable to members fell by 27% to a loss of $11.65 million.
- No dividends were declared during the financial period.
- Basic and diluted earnings per share remained at -$0.020.
Segment Information
The company's performance across its various segments was mixed. The oyster farming segment reported revenue of $1.31 million, while the distribution segment generated $20.10 million. The corporate and sundry business units contributed $1.73 million to the total revenue. Despite these contributions, the overall decline in revenue and increased expenses led to a significant net loss.
The decline in East 33 Ltd's financial performance is likely to impact its stock price negatively. Investors may react to the reduced revenue and increased net loss, leading to potential sell-offs. The lack of dividend declarations further adds to the negative sentiment, as investors may seek more stable and profitable investment opportunities.
Investor Reaction:
Analysts have expressed concerns over East 33 Ltd's declining financial performance. The 27% drop in net profit and the unchanged negative earnings per share indicate ongoing challenges for the company. Investors are likely to be cautious, awaiting further strategic responses from the company to address these financial issues.
Conclusion:
Investors should closely monitor East 33 Ltd's financial performance and strategic initiatives in the coming months. The company's ability to reverse the declining trend and improve profitability will be crucial in maintaining investor confidence. Stay tuned for further updates and detailed analysis on East 33 Ltd's financial health and market position.