EDEN INC. BERHAD: Strong Profit Growth Despite Revenue Dip – A Deep Dive into Their Latest Quarter
Hello, fellow Malaysian retail investors! Today, we’re unboxing the latest quarterly report from EDEN INC. BERHAD (the Group) for the period ended 31 March 2025. This report offers a fascinating glimpse into the Group’s operational resilience, showcasing a remarkable surge in profitability even as overall revenue saw a decline. The headline? A substantial increase in both quarterly and year-to-date profits, highlighting effective cost management and strategic operational improvements. Let’s delve into the numbers and uncover what’s driving these trends.
Core Financial Highlights: A Story of Profit Resilience
The latest quarter (3 months ended 31 March 2025) reveals a compelling narrative of EDEN INC. BERHAD’s ability to boost its bottom line amidst challenging revenue figures.
For the individual quarter ended 31 March 2025, the Group reported a 56% increase in profit for the year, reaching RM2.52 million!
Let’s break down the key figures for the quarter and year-to-date performance:
Quarterly Performance (3 months ended 31 March 2025 vs. 31 March 2024)
Current Quarter (31.03.2025)
Revenue: RM34.84 million
Profit Before Tax: RM3.53 million
Profit for the Year: RM2.52 million
Basic Earnings Per Share: 0.50 sen
Previous Corresponding Quarter (31.03.2024)
Revenue: RM47.51 million
Profit Before Tax: RM2.34 million
Profit for the Year: RM1.61 million
Basic Earnings Per Share: 0.35 sen
Despite a 27% decline in revenue to RM34.84 million compared to the same quarter last year, the Group significantly improved its Profit Before Tax (PBT) by 51% to RM3.53 million. This positive trend flowed down to the net profit, which saw a 56% jump to RM2.52 million. This indicates strong operational efficiency and cost management, allowing the Group to extract more profit from each Ringgit of revenue.
Year-to-Date Performance (9 months ended 31 March 2025 vs. 31 March 2024)
Current Year-to-Date (31.03.2025)
Revenue: RM100.12 million
Profit Before Tax: RM13.68 million
Profit for the Year: RM10.61 million
Basic Earnings Per Share: 2.10 sen
Previous Corresponding Year-to-Date (31.03.2024)
Revenue: RM134.16 million
Profit Before Tax: RM6.65 million
Profit for the Year: RM4.19 million
Basic Earnings Per Share: 0.91 sen
The year-to-date figures mirror the quarterly success, with revenue down 25% to RM100.12 million. However, PBT more than doubled, increasing by an impressive 106% to RM13.68 million. Net profit for the year-to-date period also surged by 153% to RM10.61 million, demonstrating a consistent and significant improvement in overall profitability.
Segmental Performance: The Engines of Growth
EDEN INC. BERHAD operates primarily through its Energy and Food & Beverages (F&B) and Tourism segments. Both contributed positively to the Group’s profitability.
Energy Segment
Despite a revenue decline of 35% in the latest quarter to RM26.67 million (due to reduced electricity output from the Libaran plant, partially offset by higher output from Sungai Kenerong), the Energy Segment’s PBT remarkably increased by 29% to RM4.62 million. This was mainly driven by the improved performance of the Sungai Kenerong plant. For the year-to-date, the Energy Segment’s PBT soared by 132% to RM13.76 million, primarily due to improved operational and cost efficiencies at the Libaran plant and stronger revenues from Sungai Kenerong. This highlights the Group’s effective management of its power generation assets.
Food & Beverages (F&B) and Tourism Segment
The F&B and Tourism Segment continued its profitable streak. For the quarter, revenue grew by 22% to RM8.18 million, leading to a 20% increase in PBT to RM1.64 million. This was largely attributed to strong contributions from Underwater World Langkawi’s aquarium and retail operations. Year-to-date, this segment’s PBT rose by 16% to RM6.87 million on an 8% increase in revenue to RM22.50 million, with the Tourism Segment being the main PBT contributor, supported by an improved F&B Segment.
Financial Health: A Stable Foundation
As of 31 March 2025, EDEN INC. BERHAD maintained a stable financial position.
As At 31 March 2025
Total Assets: RM437.46 million
Total Equity: RM347.96 million
Total Liabilities: RM89.51 million
Net Assets Per Share: RM0.69
As At 30 June 2024
Total Assets: RM442.12 million
Total Equity: RM337.34 million
Total Liabilities: RM104.78 million
Net Assets Per Share: RM0.67
While total assets saw a slight decrease, total equity increased, and total liabilities significantly reduced, indicating a strengthening balance sheet. The net assets per share also saw a positive bump from RM0.67 to RM0.69. Cash generated from operating activities for the nine months ended 31 March 2025 also saw a healthy increase to RM5.73 million, up from RM2.43 million in the same period last year, reflecting improved cash flow generation from core operations.
Risks and Prospects: Navigating the Future
EDEN INC. BERHAD is not just relying on past performance; they are actively shaping their future.
The Group anticipates a satisfactory performance for the financial year ending 30 June 2025, with the Energy Segment continuing to be a key driver. A significant development is the two-year extension of the Power Purchase Agreement (PPA) with Sabah Electricity Sdn Bhd for the Libaran plant, increasing its capacity by an additional 15 MW to 45 MW. This ensures continued contribution to the Group’s earnings and addresses Sabah’s growing energy demand.
Furthermore, in line with its strategic shift towards renewable energy, the Group has signed a PPA with Tenaga Nasional Berhad for a large-scale solar plant in Gebeng, Kuantan. This move into solar power aligns with global energy transition trends and positions EDEN INC. BERHAD for future growth in the green energy sector. They are actively pursuing more renewable energy ventures while focusing on operational cost optimization.
The F&B and Tourism Segment also holds promising prospects. The Group is redeveloping and upgrading the Underwater World Langkawi aquarium facility and commercial retail spaces to attract more visitors. The F&B Segment is also transitioning into business-to-business operations and exploring other growth opportunities, indicating a proactive approach to market changes.
However, it’s important to acknowledge that the Group’s revenue has seen declines, particularly in the Energy segment, primarily due to reduced output from the Libaran plant in certain periods. While profitability has improved through efficiency, sustained revenue growth will be crucial for long-term expansion. The increase in overheads and a slight reduction in other income in the latest quarter compared to the immediate preceding quarter also highlight the need for continued vigilance in cost and income management.
Corporate Developments and Capital Utilisation
The Group has been active with corporate proposals. Notably, the proposed debt settlement with Zil Enterprise Sdn Bhd was completed on 7 April 2025, involving the transfer of land, which will strengthen the Group’s asset base. The issuance of 252,677,932 Warrants C was also completed on 26 March 2025, providing potential future capital.
Regarding the private placement proceeds of RM6.52 million, the Group has utilized a significant portion for the enhancement and upgrading of Underwater World Langkawi and for working capital. The remaining unutilized proceeds have had their timeframe extended to 7 April 2026, ensuring strategic deployment for future growth initiatives.
Summary and
EDEN INC. BERHAD’s latest quarterly report paints a picture of a resilient company that has successfully improved its profitability despite a challenging revenue environment. The significant increase in Profit Before Tax and Net Profit, both for the quarter and year-to-date, demonstrates effective cost control and operational efficiency, particularly within the Energy segment. The F&B and Tourism segment also continues to be a consistent contributor, with plans for redevelopment and strategic shifts. The Group’s strategic moves into renewable energy and the extension of key power agreements are positive indicators for future growth and diversification.
While the overall revenue decline warrants attention, the Group’s ability to boost its bottom line and generate stronger operating cash flows is a testament to its management’s capabilities. The completion of the debt settlement and the issuance of warrants also reflect proactive financial management.
However, potential investors should consider the following points:
- Revenue Volatility: The Group has experienced revenue declines, particularly in the Energy segment, which could be subject to operational factors (like plant output) and market conditions. Sustained revenue growth will be key for long-term expansion.
- Cost Management: While overall costs have been managed effectively to boost profits, the quarter-on-quarter increase in overheads and slight reduction in other income suggest that continuous vigilance in cost control and revenue diversification is necessary.
- Project Execution: The success of new ventures like the large-scale solar plant and the redevelopment of Underwater World Langkawi will depend on effective project execution and market reception.
Overall, EDEN INC. BERHAD appears to be on a positive trajectory, leveraging operational improvements and strategic initiatives to enhance shareholder value. Their focus on both traditional and renewable energy, coupled with revitalizing their tourism assets, positions them for potential future growth.
Your Thoughts?
What are your impressions of EDEN INC. BERHAD’s latest performance? Do you think the Group can maintain this impressive profit growth momentum, especially with their new ventures in renewable energy? Share your views and insights in the comments section below!
For more in-depth analyses of Malaysian companies, check out our related articles:
- [Link to related article 1]
- [Link to related article 2]
