Eden returns to the black with small profit

KUALA LUMPUR: Eden Inc Bhd registered a net profit of RM411,000 in first quarter ended March 31, for the first time since the quarter ended June 30, 2016, mainly due to savings in cost of sales of the energy segment, as well as higher income from other segments.

Revenue, however, was lower at RM10.89mil during the quarter from RM22.08mil. Earnings per share stood at 0.11 sen against loss per share of 0.96 sen a year ago. 

The company is involved in the business of energy, manufacturing, food and beverage and tourism.

Its food & beverage and tourism business recorded revenue and pre-tax profit of RM6.42mil and RM2.14mil respectively as compared to RM5.98mil and RM2.10mil respectively for the same corresponding period last year. 

The marginal increase in the pre-tax profit was derived from higher revenue recorded by tourism segment but offset by the decline in other income.

Commenting on the prospects of the company, Eden board of directors is in the opinion that the Tourism business in the food & beverage and tourism segment will continue to contribute positively to the performance of the group supported by the ongoing refurbishment and upgrading projects to attract more visitors to visit Underwater World Langkawi.

“Year 2019 is expected to be a better year for the company with the Kenerong Hydro plant generating from four turbines as compared to only from two turbines for most part of 2018. 

“In relation to Libaran plant operations, the recommencement of operations by end of the first half of the year should allow the company to contribute to the revenue of the company and an improved performance for the year. This is made possible with the finalisation of the new fuel supply arrangement during this quarter,” Eden said in a statement.

The company expects to show an improvement in its 2019 performance primarily driven by the improved and continuous generation of both power plants and the completion of the refurbishment and upgrading works in Underwater World Langkawi.