Enviro-Hub L23 0.00%   has reported earnings of $2.2 million for the FY2022 ended Dec 31, 2022, 17% lower than FY2021&rsquo s earnings of $2.7 million.

 

The lower earnings came in spite of the higher y-o-y revenue as gross profit fell in the same period due to gross losses in the group&rsquo s healthcare and construction segments.

 

Revenue increased by 9.2% y-o-y to $44.1 million due to the contribution of the group&rsquo s healthcare segment after it acquired Pastel Glove. The higher revenue was also attributed to higher sales from the group&rsquo s recycling business.

 

Gross profit, on the other hand, fell by 36.0% y-o-y to $5.9 million, which led to a lower gross profit margin (GPM) of 13.4%, down 9.4 percentage points y-o-y.

 

Meanwhile, profit before tax increased by 6% y-o-y to $6.0 million as other income grew by 73% y-o-y to $11.0 million. The higher other income was due mainly to provision of guaranteed income and higher fair value gain on investment properties.

 

During the year, the group posted a share of loss of associate of $227,000 compared to the previous year&rsquo s profit of associate of $516,000.

 

Earnings per share (EPS) stood at 0.15 cents.

 

As at Dec 31, 2022, cash and cash equivalents stood at $13.7 million.

 

A final cash dividend of 0.1 cent per share has been declared, payable on June 8. The dividend represents a payout ratio of 66.7% of the group&rsquo s FY2022 earnings.

 

In its statement, the group says it remains &ldquo optimistic&rdquo about its future growth trajectory in e-waste recycling and healthcare segments. It adds that is also optimistic about the structural growth of the rubber glove industry post-consolidation. According to the Malaysia Rubber Glove Manufacturers Association, the group notes that normalisation of the glove supply-demand equilibrium will occur within six to nine months, while global demand for rubber gloves is projected to grow at 10% to 12% per year.

 

&ldquo As we continue to navigate through a period of economic volatility, we are proud to deliver continued revenue growth in our e-waste recycling segment. The rapid expansion of our retail pharmaceutical brand and our on-going strategic collaborations with healthcare providers in Malaysia reaffirms our commitment to improving the region&rsquo s health infrastructure. We are optimistic about the outlook of our core businesses and believe it will unlock sustainable returns for our shareholders,&rdquo says Raymond Ng, executive chairman of Enviro-Hub.