PETALING JAYA: NWP Holdings Bhd is looking to achieve profitability in the financial year 2024 (FY24) supported by its diversification into the sand dredging business and cost-cutting initiatives.
NWP Holdings Bhd executive director Tan Jyy Yeen said the timber product manufacturer has tied up with OneOne Auro Marine Sdn Bhd in June 2022 to undertake the contracting work of dredging, transporting, and loading marine sand from the concession area for export and local reclamation sites.
“We are looking forward to FY24 as successful cost-cutting initiatives in FY23 and our diversification into the sand dredging business put us in a strong position to turn profitable,” she said in a statement yesterday. NWP has also secured a two-year contract worth RM36mil for a marine, mining, and transportation project in Melaka earlier this month.
“We believe this project will significantly contribute to the growth and expansion of the group’s revenue streams, potentially bringing NWP back into profitability by this financial year,” she said.
For the fourth quarter ended Feb 28, 2023 (4Q23), the group’s revenue was down by 41% year-on-year (y-o-y) to RM481,000 from RM818,000 in 4Q22 underpinned by a decline in lower overseas sales of timber as a result of lower demand.
The company, however, narrowed its losses for the quarter under review to RM95,000 from a net loss of RM9.2mil in 4Q22 mainly attributable to lower expenses from cost cutting measures.
NWP has reduced its headcount and relocated office premises to one of lower rental in 4Q23.
For FY23, NWP registered a net loss of RM5.3mil or 70% lower than the net loss of RM17.4mil previously sustained in FY22.
Revenue for FY23 came in 18.6% lower at RM2.6mil from RM3.2mil in FY22, as NWP has only one operating subsidiary in the timber business.
Tan said while the challenge of managing operational costs would likely remain moving forward, the group is optimistic that a leaner workforce and more efficient operation within the company would help NWP turnaround in the near term.
