ESGL Holdings Limited Reports First Half 2024 Financial Results
SINGAPORE, Sept. 20, 2024 (GLOBE NEWSWIRE) -- ESGL Holdings Limited (NASDAQ:ESGL) ("ESGL" or the "Company"), a leading carbon neutral, innovative enviro-tech company regenerating industrial waste into circular products, today announced its financial results for the six-month period ended June 30, 2024.
First Half 2024 Highlights:
First-Time Subsidiary Profitability: ESGL's operating subsidiary posted its first-ever profitable half-year, a significant milestone compared to the loss recorded in first half of 2023.
Revenue Growth: Revenue for the first half of 2024 increased to US$3.49 million, a 2.8% improvement from the prior year, despite regulatory challenges and volatility in waste volumes.
Significant Reduction in Losses: Loss before taxation improved by 45.3%, reduced from US$590,000 in the first half of 2023 to US$322,000, driven by strict cost management and operational efficiencies.
Logistics Cost Savings: Logistics costs were reduced by US$527,000, a 66.6% decrease year-on-year, significantly improving the Company's cost base.
Operational and Segment Performance:
Solid Waste Thermal Processing Solutions: Revenue grew by 8.15%, underpinned by the collection of new waste types and the expansion of the Company's customer base.
Liquid Waste Synthesis Solutions: Revenue in this segment declined by 45.8% due to the regulatory impact on a key customer. However, the Company expects recovery in the second half of 2024.
Circular Products Sales: Sales declined by 39.1% due to lower demand for base metals, though the Company remains optimistic about improving market conditions.
Other Income: Foreign exchange gains contributed to a US$93,000 increase in other income, reflecting favorable currency movements.
Outlook for the Second Half of 2024:
ESGL is optimistic about its performance in the second half of 2024, driven by a focus on expanding its solid hazardous waste customer base and regaining liquid hazardous waste volume, while maintaining operational efficiency and achieving cost savings. Additionally, the Company is actively working to renew long-term contracts with key clients to sustain and enhance profitability.
CEO Statement:
Quek Leng Chuang, Chief Executive Officer and Chairman of ESGL, commented: "We are proud to report that our operating subsidiary has achieved its first profitable half-year. This significant milestone reflects the strength of our strategic focus on cost efficiency and operational optimization. As we look toward the second half of 2024, we remain confident in our ability to drive sustained growth across our core segments and continue to build momentum toward long-term profitability."
About ESGL Holdings Limited
ESGL Holdings Limited is a Singapore-based carbon-neutral enviro-tech company dedicated to transforming industrial waste into circular products. With a commitment to sustainable waste management solutions, ESGL is a leading player in the environmental solutions industry. ESGL conducts all its operations through its operating subsidiary incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. For more information, including the Company's filings with the SEC, please visit https://esgl.asia.
Investor Relations Contact:
ESGL Holdings LimitedInvestor Relations DepartmentEmail: +65 6653 2299Forward-Looking Statements Certain statements in this press release may be considered to contain certain "forward-looking statements" within the meaning of "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "target," "believe," "expect," "will," "shall," "may," "anticipate," "estimate," "would," "positioned," "future," "forecast," "intend," "plan," "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Examples of forward-looking statements include, among others, statements made in this press release regarding anticipated future financial and operating performance and results, including estimates for growth, gross margins, adjusted EBITDA, potential regional expansion, development of new products, partnerships, customer relationships, demand for waste processing, and sales of circular products. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ESGL management's current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. A further list and description of risks and uncertainties can be found in documents filed with the Securities and Exchange Commission ("SEC") by ESGL and other documents that the Company may file or furnish with the SEC, which you are encouraged to read. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as required by law.
ESGL Holdings Limited Consolidated Statement of Financial PositionAs at June 30, 2024 and December 31, 2023
June 30, 2024
December 31, 2023
US$
US$
ASSETS
Current assets
Cash and cash equivalents
256,501
366,761
Trade and other receivables
985,951
1,032,522
Prepaid forward purchase agreement
-
969
Inventories
78,682
64,184
1,321,134
1,464,436
Non-current assets
Property, plant and equipment, net
21,043,668
21,786,365
Intangible assets, net
2,475,974
2,381,465
23,519,642
24,167,830
Total assets
24,840,776
25,632,266
LIABILITIES
Current liabilities
Trade and other payables
5,503,478
6,560,559
Lease liabilities
149,516
192,282
Borrowings
4,672,286
5,666,160
Deferred underwriting fee payable
2,153,125
2,753,125
Tax liabilities
203,020
56,540
12,681,425
15,228,666
Non-current liabilities
Lease liabilities (non-current)
1,852,343
1,974,524
Borrowings (non-current)
-
112,319
Deferred tax liabilities
298,000
296,000
2,150,343
2,382,843
Total liabilities
14,831,768
17,611,509
Net assets
10,009,008
8,020,757
EQUITY
Share Capital
11,892
10,892
Accumulated losses
(100,457,352
)
(99,985,928
)
Other reserves
3,422,799
3,422,799
Share premium reserve
92,183,727
89,725,052
Exchange Reserves
(123,198
)
(123,198
)
Revaluation Surplus
14,971,140
14,971,140
Total equity
10,009,008
8,020,757
ESGL Holdings Limited Consolidated Statement of ...
