KUALA LUMPUR: NWP Holdings Bhd (NHB) net loss narrowed to RM95,000 in the fourth quarter (Q4) of the financial year that ended February 28, 2023 (FY23) from a net loss of RM9.1 million a year ago, underpinned by cost savings from the termination of a lease and lower financing costs.
However, revenue for the quarter was down by 41 per cent to RM481,000 from RM818,000 for the corresponding quarter a year ago, mainly due to lower overseas timber sales due to lower demand.
During the quarter, NHB has also recorded lower expenses compared to Q4 FY22 due to cost-cutting measures such as lowering headcount and moving office premises to lower rentals.
NWP executive director Tan Jyy Yeen said the company's cost-cutting initiatives have successfully borne results.
"The company has taken proactive measures to streamline our business and focus our efforts on managing our costs, as the mould and timber businesses have struggled for several years.
"While these challenges remain going forward, we are confident that a leaner workforce and a more efficient operation within the company will help us turn around in the near term," she said in a statement today.
For the full financial year of 2023 (FY23), NWP recorded a net loss of RM5.25 million, about 69.7 per cent lower than the net loss of RM17.35 million recorded in FY22.
Full-year revenue was 18.6 per cent lower at RM2.63 million compared to RM3.23 million recorded for the corresponding period a year ago, as there is only one operating subsidiary in the timber business.
According to Tan, NWP is poised for a turnaround in the upcoming financial year, with the company diversifying into the sand dredging business to generate additional revenue and earnings.
She added that the company is looking forward to FY24 as successful cost-cutting initiatives in FY23 and its diversification into the sand dredging business put NHB in a strong position to turn profitable.
She also noted that in June last year, NHB entered into a joint venture agreement with OneOne Auro Marine Sdn Bhd to undertake contracting work for dredging, transporting, and loading marine sand from the concession area for export and local reclamation sites.
Earlier this month, NHB secured a two-year contract worth RM36 million for a marine, mining, and transportation project in Melaka.
Tan believes this project will significantly contribute to the growth and expansion of the company's revenue streams, potentially bringing NHB back into profitability by this financial year.