Ecoscience Q2 2025 Report: Revenue Soars by 17.8%, Losses Narrow Significantly
Ecoscience International Berhad, a key player in the construction of palm oil mills and facilities, has just released its financial results for the second quarter ended June 30, 2025. The report reveals a significant turnaround in quarterly performance with impressive revenue growth, though the company continues to navigate a challenging market. Let’s dive deep into the numbers and see what they tell us about the company’s health and future prospects.
This quarter’s standout figure is the 17.82% surge in revenue compared to the same period last year, a clear indicator of improving operational momentum. This growth helped the company cut its pre-tax loss by nearly half, a promising sign for investors watching its recovery.
Core Financial Highlights: A Tale of Recovery
While the year-to-date figures show a decline compared to 2024, the second quarter’s performance paints a much brighter picture. The company’s revenue saw a healthy increase, which directly contributed to a stronger gross profit and a much narrower loss. This suggests a positive shift in project execution and billing cycles.
Q2 2025 Results
Revenue
RM 34.54 million
Gross Profit
RM 3.10 million
Loss Before Tax (LBT)
(RM 1.38 million)
Loss Per Share
(0.37 sen)
Q2 2024 Results
Revenue
RM 29.32 million
Gross Profit
RM 1.51 million
Loss Before Tax (LBT)
(RM 2.75 million)
Loss Per Share
(0.63 sen)
The primary driver behind this revenue boost was higher progressive claims from its core business: the construction of plants and facilities. Essentially, as the company completes more stages of its construction projects, it can bill its clients for that work, leading to recognized revenue.
Business Segment Performance
Breaking down the revenue sources, it’s clear that the “Construction of Plants and Facilities” segment was the star performer this quarter, reinforcing the company’s core strength.
| Segment | Q2 2025 Revenue (RM’000) | Q2 2024 Revenue (RM’000) |
|---|---|---|
| Construction of Plants and Facilities | 29,134 | 24,612 |
| Fabrication of Equipment | 2,953 | 2,628 |
| Supply of Materials and Equipment | 2,451 | 1,778 |
Geographical Insights: Gabon Operations Power Growth
A fascinating aspect of this quarter’s results is the geographical shift in revenue. While domestic revenue from Malaysia saw a decline, operations in Gabon experienced explosive growth, increasing more than five-fold. This single-handedly lifted the group’s overall top line and highlights the importance of its international projects.
| Region | Q2 2025 Revenue (RM’000) | Q2 2024 Revenue (RM’000) |
|---|---|---|
| Malaysia | 15,862 | 23,407 |
| Gabon | 18,566 | 3,221 |
| Indonesia | 116 | 2,691 |
Financial Position Snapshot
As of June 30, 2025, the company’s financial health shows a mixed picture. Total equity has decreased, while total liabilities have risen, primarily due to an increase in short-term borrowings to fund working capital needs. The Net Assets per share stood at RM 0.11, down from RM 0.13 at the end of 2024. This indicates that while operations are improving, the balance sheet is under some pressure.
Risks and Future Outlook
The management remains “cautiously optimistic” about the future. Their strategy is to leverage their core expertise in palm oil mill engineering while expanding into new areas and markets.
Strategic Plans:
- Indonesian Expansion: The group plans to establish a physical presence in Indonesia, a major palm oil producing country, to capture more business opportunities.
- Green Energy Focus: There is a strategic push to expand its environmental and energy efficiency business, tapping into the growing demand for sustainable agriculture and waste-to-energy solutions.
Potential Headwinds:
The company explicitly mentioned that it may continue to face margin pressure from existing projects that carry lower profitability. This is a key risk for investors to monitor, as revenue growth alone does not guarantee a return to profitability if costs remain high.
Summary and Investment Recommendations
This section provides a summary of the report for informational purposes and should not be construed as investment advice. Ecoscience’s second quarter of 2025 marks a promising operational rebound, driven by strong execution on its construction projects, particularly in Gabon. The significant revenue growth and narrowed losses are positive developments. However, the company’s year-to-date performance still lags behind the previous year, and its balance sheet shows signs of strain with increased borrowings and lower cash reserves. The outlook hinges on its ability to secure new, higher-margin projects and successfully execute its expansion plans in Indonesia and the green energy sector.
Key Risks to Consider:
- Margin Pressure: Existing low-margin projects could continue to weigh on overall profitability.
- Project Dependency: Performance is heavily reliant on the successful and timely execution of a few large-scale construction projects.
- Geographical Concentration: The strong reliance on revenue from Gabon this quarter highlights a concentration risk; future performance could be volatile depending on the project pipeline in key overseas markets.
Final Thoughts
From a professional standpoint, the Q2 results demonstrate a significant positive momentum shift for Ecoscience. The key for the company moving forward will be to sustain this revenue growth while actively improving its profit margins. The strategic pivot towards the environmental and energy efficiency sectors is timely and could unlock new long-term value if executed well.
Do you think Ecoscience can maintain this growth momentum in the coming quarters? Can their expansion into the green energy sector offset the margin pressures from traditional projects? Share your views in the comments section below!
