EPB GROUP RECORDS 16.79% GROWTH IN REVENUE TO RM21.13 MILLION IN Q2 FY2024

Strong Sequential Growth in Revenue and Profit Prepares the Group for Q2 FY2024

KUALA LUMPUR, 16 AUGUST 2024 – EPB Group Berhad (“EPB”), and its group of companies (the “Group”), an established one-stop food processing and packaging machinery solutions provider, is pleased to announce its financial results for the second quarter of the financial year ending 31 December 2024 (“Q2 FY2024”).

For Q2FY2024, the Group recorded a revenue of approximately RM21.13 million, contributing to a total revenue of approximately RM39.21 million for the six-month period ended 30 June 2024 (“6M FY2024”). Revenue in Q2 FY2024 represents a 16.79% increase compared to RM18.09 million in the preceding quarter (“Q1 FY2024”). This sequential growth was driven by higher delivery of customer orders across all business segments, including food processing and packaging machinery solutions, trading of cellulose casings, and the manufacturing and trading of flexible packaging materials.

The Group registered Profit Before Tax of RM3.45 million for Q2 FY2024, marking a significant increase of 88.22% compared to RM1.83 million in Q1 FY2024. Similarly, Profit After Tax for the quarter stood at RM2.57 million, nearly doubled as compared to the preceding quarter with a 99.77% increase from RM1.29 million in the preceding quarter. The improvement in profitability was primarily attributed to the higher revenue achieved during the quarter, along with improved gross profit and increased other income, which included the higher reversal of allowance for impairment loss on trade receivables upon collection of outstanding balances from customers.

Mr. Yeoh Chee Min, Managing Director of EPB Group Berhad commented on the financial results and outlook, stating, “We are encouraged by our strong performance in the first half of FY2024, and we anticipate even better results in the second half as our some of our larger projects may take up to six months for delivery and completion. With a robust order book of RM97.48 million as at 31 July 2024, of which RM90.51 million is expected to be fulfilled and billed in FY2024, we are confident in our ability to deliver continued growth. The positive response to our IPO further strengthens our position to capitalise on these opportunities, and we remain committed to driving sustainable growth and creating value for our stakeholders.”

The food processing machinery industry in Malaysia is expected to experience robust growth in the coming years. According to the Independent Market Research report in the prospectus of EPB dated 27 June 2024, the sector is projected to grow at a compound annual growth rate of 10.4% from 2024 to 2028, reaching an estimated market size of RM2.84 billion in 2028. This growth will be fuelled by the increasing adoption of industrial automation due to labour shortages, diversification of food products requiring advanced processing solutions, and rising consumer demand for convenient processed food products. EPB is well-positioned to capitalise on this expanding market through its strategic initiatives and continued focus on innovation.

In line with the growth opportunities in Malaysia’s food processing machinery industry, EPB is proceeding with its expansion plan, which includes the development of a new corporate office and factory in Penang. This facility, with a total built-up area of 70,000 square feet, will enhance the Group’s production capabilities, provide additional warehousing space, and showcase its product offerings. Additionally, EPB plans to increase the integration of robotic technology within its food processing and packaging machinery solutions, positioning itself at the forefront of industry innovation.

Looking forward, EPB remains optimistic about the prospects for the second half of FY2024. The Group anticipates the completion of ongoing projects in the latter half of the year will contribute positively to the overall performance of the Group.