Malaysia’s premier door frame system supplier, Econframe Berhad (EFRAME, 0227), has released its first-quarter results for the fiscal year 2025 (Q1 FY2025), revealing a dip in revenue but showcasing promising strategic moves for sustainable growth. Without further ado, let’s take a closer look at the numbers and the company’s vision for the future.
For the quarter ending August 31, 2024, EFRAME reported a revenue of RM22.68 million, marking a 16.56% decline compared to RM27.18 million in the same period last year. The slowdown was mainly due to reduced sales orders for metal door frames and fire-resistant door sets during the quarter.
Breaking it down, the manufacturing segment brought in RM19.80 million, while the trading segment contributed RM2.88 million—representing year-on-year declines of 12.87% and 35.38%, respectively.
Net profit for Q1 FY2025 stood at RM2.36 million, a decrease of RM2.04 million or 46.34% compared to RM4.40 million in Q1 FY2024. This decline was driven by lower revenue and higher administrative expenses, which rose to RM3.25 million from RM2.49 million last year.
Despite these challenges, the company delivered a silver lining. Compared to the previous quarter, revenue dipped by RM1.75 million or 7.17%, but net profit rose by RM0.64 million or 37.49% to RM2.36 million, driven by improved gross profit margin contributions from the manufacturing segment.
Notably, EFRAME continues to operate as a net cash company, underscoring its solid financial stability. The company reported RM31.31 million in cash and cash equivalents in this quarter, a remarkable 52.94% increase year-on-year. Borrowings, on the other hand, remained low at RM8.47 million.
Looking ahead, EFRAME is doubling down on its growth strategies. The company plans to replenish its order book for total door solutions while ramping up in-house production of wooden doors to meet growing demand. Notably, it is actively exploring export opportunities for this promising product line.
In an exciting development, EFRAME recently announced its acquisition of Ivory Pearl Sdn Bhd (IPSB), an Ipoh-based manufacturer and seller of wooden doors. This strategic move is poised to significantly expand EFRAME’s presence in key international markets, including the UK and Australia.
The acquisition is expected to boost EFRAME’s manufacturing capacity while unlocking cross-selling opportunities for its diverse product portfolio to IPSB’s overseas clients.
With its robust financial position and forward-looking strategies, Econframe Berhad is not only navigating current challenges but also setting the stage for long-term growth in the global market.
Created by Waller | Jan 24, 2025