ESGL Holdings Limited reported a profitable first half of 2024 with revenue growth
From GlobeNewswire: 2024-09-20 09:00:00
create short, engaging summaries of the news. Limit summaries to 50 words or less per paragraph. Ensure clarity and engagement, Include all facts, figures and statistics mentioned in the news article. Arrange summaries sequentially or by relevance in easy to read paragraph format. Verify accuracy and state only facts, ignore any promotional or marketing of services in the article: SINGAPORE, Sept. 20, 2024 (GLOBE NEWSWIRE) — ESGL Holdings Limited (NASDAQ: ESGL) (“ESGL” or the “Company”), a leading carbon neutral, innovative enviro-tech company regenerating industrial waste into circular products, today announced its financial results for the six-month period ended June 30, 2024. First Half 2024 Highlights: First-Time Subsidiary Profitability: ESGL’s operating subsidiary posted its first-ever profitable half-year, a significant milestone compared to the loss recorded in first half of 2023.Revenue Growth: Revenue for the first half of 2024 increased to US$3.49 million, a 2.8% improvement from the prior year, despite regulatory challenges and volatility in waste volumes.Significant Reduction in Losses: Loss before taxation improved by 45.3%, reduced from US$590,000 in the first half of 2023 to US$322,000, driven by strict cost management and operational efficiencies.Logistics Cost Savings: Logistics costs were reduced by US$527,000, a 66.6% decrease year-on-year, significantly improving the Company’s cost base. Operational and Segment Performance: Solid Waste Thermal Processing Solutions: Revenue grew by 8.15%, underpinned by the collection of new waste types and the expansion of the Company’s customer base.Liquid Waste Synthesis Solutions: Revenue in this segment declined by 45.8% due to the regulatory impact on a key customer. However, the Company expects recovery in the second half of 2024.Circular Products Sales: Sales declined by 39.1% due to lower demand for base metals, though the Company remains optimistic about improving market conditions.Other Income: Foreign exchange gains contributed to a US$93,000 increase in other income, reflecting favorable currency movements. Outlook for the Second Half of 2024: ESGL is optimistic about its performance in the second half of 2024, driven by a focus on expanding its solid hazardous waste customer base and regaining liquid hazardous waste volume, while maintaining operational efficiency and achieving cost savings. Additionally, the Company is actively working to renew long-term contracts with key clients to sustain and enhance profitability. CEO Statement: Quek Leng Chuang, Chief Executive Officer and Chairman of ESGL, commented: “We are proud to report that our operating subsidiary has achieved its first profitable half-year. This significant milestone reflects the strength of our strategic focus on cost efficiency and operational optimization. As we look toward the second half of 2024, we remain confident in our ability to drive sustained growth across our core segments and continue to build momentum toward long-term profitability.” About ESGL Holdings Limited ESGL Holdings Limited is a Singapore-based carbon-neutral enviro-tech company dedicated to transforming industrial waste into circular products. With a commitment to sustainable waste management solutions, ESGL is a leading player in the environmental solutions industry. ESGL conducts all its operations through its operating subsidiary incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. For more information, including the Company’s filings with the SEC, please visit https://esgl.asia. Investor Relations Contact: ESGL Holdings LimitedInvestor Relations DepartmentEmail: [email protected]: +65 6653 2299Forward-Looking Statements Certain statements in this press release may be considered to contain certain “forward-looking statements” within the meaning of “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “target,” “believe,” “expect,” “will,” “shall,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” “forecast,” “intend,” “plan,” “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Examples of forward-looking statements include, among others, statements made in this press release regarding anticipated future financial and operating performance and results, including estimates for growth, gross margins, adjusted EBITDA, potential regional expansion, development of new products, partnerships, customer relationships, demand for waste processing, and sales of circular products. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ESGL management’s current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. A further list and description of risks and uncertainties can be found in documents filed with the Securities and Exchange Commission (“SEC”) by ESGL and other documents that the Company may file or furnish with the SEC, which you are encouraged to read. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as required by law. ESGL Holdings Limited Consolidated Statement of Financial PositionAs at June 30, 2024 and December 31, 2023 June 30, 2024 December 31, 2023 US$ US$ASSETS Current assets Cash and cash equivalents256,501 366,761 Trade and other receivables985,951 1,032,522 Prepaid forward purchase agreement- 969 Inventories78,682 64,184 1,321,134 1,464,436 Non-current assets Property, plant and equipment, net21,043,668 21,786,365 Intangible assets, net2,475,974 2,381,465 23,519,642 24,167,830 Total assets 24,840,776 25,632,266 LIABILITIES Current liabilities Trade and other payables5,503,478 6,560,559 Lease liabilities149,516 192,282 Borrowings4,672,286 5,666,160 Deferred underwriting fee payable2,153,125 2,753,125 Tax liabilities203,020 56,540 12,681,425 15,228,666 Non-current liabilities Lease liabilities (non-current)1,852,343 1,974,524 Borrowings (non-current)- 112,319 Deferred tax liabilities298,000 296,000 2,150,343 2,382,843 Total liabilities 14,831,768 17,611,509 Net assets 10,009,008 8,020,757 EQUITY Share Capital11,892 10,892 Accumulated losses(100,457,352) (99,985,928)Other reserves3,422,799 3,422,799 Share premium reserve92,183,727 89,725,052 Exchange Reserves(123,198) (123,198)Revaluation Surplus14,971,140 14,971,140 Total equity10,009,008 8,020,757 ESGL Holdings Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income for the FinancialPeriods ended June 30, 2024 and 2023 June 30, 2024June 30, 2023 US$US$Revenue3,487,879 3,394,313 Other income282,213 189,335 Cost of inventory(78,366)(407,291) Logistics costs(264,638)(792,079) Depreciation of property, plant and equipment(781,394)(758,519) Amortization of intangible assets(559,340)(426,515) Employee benefits expense(878,320)(639,060) Finance expense(147,128)(158,912) Other operating expenses(1,383,850)(991,526)Loss before income tax(322,944)(590,254) Income tax expense(148,480)(39,000) Net loss and comprehensive loss(471,424)(629,254) Loss per share(0.03)(0.10)Weighted average number of shares14,000,514 6,378,267 ESGL Holdings Limited Consolidated Statement of Changes in Equity for the Financial Periods ended June 30, 2024 and 2023 Sharecapital Revaluationreserve Exchangereserve Sharepremiumreserve Otherreserve Accumulatedlosses Total equity US$ US$ US$ US$ US$ US$ US$ 2023 Beginning of financial year10,000 15,157,824 (460,481) – 3,422,799 (5,006,590) 13,123,552 Issuance of new shares3 – – 753,587 – – 753,590 Loss for the year- – – – – (629,254) (629,254)Balance as of June 30, 202310,003 15,157,824 (460,481) 753,587 3,422,799 (5,635,844) 13,247,888 2024 Beginning of financial year10,892 14,971,140 (123,198) 89,725,052 3,422,799 (99,985,928) 8,020,757 Issuance of new shares1,000 – – 2,458,675 – – 2,459,675 Loss for the year – – – – – (471,424) (471,424)Balance as of June 30, 2024 11,892 14,971,140 (123,198) 92,183,727 3,422,799 (100,457,352) 10,009,008 ESGL Holdings Limited Consolidated Statement of Cash Flows for the Financial Periods ended June 30, 2024 and 2023 June 30, 2024 June 30, 2023 US$ US$ Cash flows from operating activities Loss before income tax (322,944) (590,254) Adjustments for: – Prepaid forward purchase agreement written-off 969 – – Depreciation of property, plant and equipment 781,394 758,519 – Amortisation of intangible assets 559,340 426,515 – Interest income (3) (12,002)- Interest expense 147,128 158,912 – Loss/(gain) on disposal of property, plant and equipment – 1,795 – Foreign exchange adjustment (191,391) 312,051 974,493 1,055,536 Changes in operating assets and liabilities: – Trade and other receivables 40,746 (687,016)- Inventories (14,498) 153,252 – Trade and other payables (1,043,521) 167,205 Net cash (used in)/generated from operating activities (42,780) 688,977 Cash flows from investing activities Purchase of property, plant and equipment (38,697) (115,334)Proceeds from disposal of property, plant and equipment – 1,352 Additions to intangible assets (653,849) (633,912)Interest received 3 12,002 Net cash used in investing activities (692,543) (735,892) Cash flows from financing activities Proceeds from bank borrowings 747,197 2,246,518 Repayment of bank borrowings (1,691,453) (1,831,341)Shares issuance 2,459,675 753,590 Repayment of underwriting fees(600,000) – Repayments of lease liabilities (143,228) (57,718)Interest paid (147,128) (158,912)Net cash provided by provided by financing activities 625,063 952,137 Net (decrease)/increase in cash and bank balances (110,260) 905,222 Cash and cash equivalents Beginning of the financial year 366,761 252,399 End of the financial periods 256,501 1,157,621 General informationESGL Holdings LimitedESGL Holdings Limited (“ESGL” or the “Company”) was incorporated in the Cayman Islands on November 18, 2022. Following the successful completion of a business combination on August 3, 2023 (the “Business Combination”), ESGL listed on Nasdaq and became a publicly traded company. ESGL’s stock commenced trading August 4, 2023.ESGL’s subsidiaries are as follows:Environmental Solutions Group Holdings Limited (“ESGH”)Environmental Solutions Group Holdings Limited is a holding company incorporated under the laws of the Cayman Islands as an exempted company with limited liability on June 14, 2022. The address of its registered office is 71 Fort Street, PO Box 500, George Town, Grand Cayman, KY1-1106, Cayman Islands. As a holding company with no material operations of its own, ESGH conducts all of its…
Read more at GlobeNewswire:: ESGL Holdings Limited Reports First Half 2024 Financial