Tex Cycle Reports Solid Q2 FY2024 Financial Results With Profit Before Tax Of RM2.8 Million

Navigating Market Dynamics with Strategic Agility and Continued Operational Efficiency

KUALA LUMPUR, 13 AUGUST 2024 – Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, is pleased to announce its financial results for the second quarter ended 30 June 2024 (“Q2 FY2024”). The Group reported a revenue of RM8.3 million and RM2.8 million in Profit Before Tax (“PBT”) in the current quarter.

Compared with preceding year corresponding quarter (“Q2 FY2023”), the Group see marginal dip in revenue of approximately RM0.2 million. However, the PBT decreased by RM3.3 million or 54.0% largely due to fair value gain on quoted securities in Q2 FY2023, which was non-core earnings of Tex Cycle.

Quarter-on-quarter wise, Tex Cycle’s revenue increased by 3.0% due to strong sales demand from its core recovery and recycling business. PBT in the previous quarter (“Q1 FY2024”) was lowered by RM6.2 million or 69.0% largely due to the one-off gain on disposal of property, plant and equipment.

Mr. Gary Dass A/L Anthony Francis, Group Chief Executive Officer of Tex Cycle said, "In this quarter, despite challenging market conditions, Tex Cycle has continued to demonstrate prudent financial management and vigilance in our operational activities. Our approach, combined with strategic foresight, has allowed us to manage fluctuations effectively and maintain stability. This not only reflects our commitment to sustainable practices but also ensures that we remain resilient and strategically positioned to capitalise on future opportunities."

In the recent quarter, Tex Cycle successfully raised funds through a private placement aimed at supporting the Sabah Integrated Waste Management Facility. The Company also expanded its service offerings by acquiring the Meridian Group of Companies, broadening its capabilities to include chemical processing and wastewater treatment, among others.

Additionally, the biogas power plant under GLT BP Power Sdn. Bhd. commenced operations in April, marking a significant step in sustainable energy. A new collaboration with Econas Resource to Energy also promises to enhance Tex Cycle's scheduled waste management operations, demonstrating ongoing improvements across the Group. These progressive steps showcase the continuous growth plans executed by Tex Cycle to deliver sustainable stakeholders value.

As at 5:00 P.M., 13 August 2024, the share price of Tex Cycle closed at RM1.23, representing a market capitalisation of RM345.9 million.