JADI reports downturn amid global economic challenges
March 21, 2024
JADI’s Q3 shows revenue drop and increased losses, plans strategic recovery measures underway.
In a recent financial update, JADI IMAGING HOLDINGS BERHAD disclosed its performance for the third quarter ended December 31, 2023, revealing a downturn in its financial health amid challenging market conditions. The company reported a decrease in quarterly revenue, falling from RM 7.78 million (approximately $1.88 million/ €1.72 million) in the previous year to RM 6.58 million ($1.59 million/ €1.45 million).
This year’s revenue trend continued to decline, with year-to-date figures dropping from RM 27.15 million ($6.56 million/ €6.00 million) to RM 19.19 million ($4.64 million/ €4.24 million).
JADI transitioned from a gross profit position to a gross loss of RM 1.13 million ($0.27 million/ €0.25 million) for the quarter and RM 2.49 million ($0.60 million/ €0.55 million) for the year-to-date. The losses before taxation surged, with quarterly losses doubling to RM 4.70 million ($1.14 million/ €1.04 million) and annual losses escalating to RM 19.53 million ($4.72 million/ €4.31 million).
The balance sheet also reflected the strain, with total assets decreasing from RM 126.62 million ($30.59 million/ €27.97 million) as of 31 March 2023, to RM 109.84 million ($26.55 million/ €24.26 million) by the end of December 2023. Equity saw a reduction from RM 97.42 million ($23.56 million/ €21.53 million) to RM 84.55 million ($20.45 million/ €18.69 million), and borrowings showed a slight decrease, settling at RM 7.17 million ($1.73 million/ €1.58 million).
The cash flow statements pointed to significant cash usage in operations, with a notable decrease in cash and cash equivalents by quarter-end. Segment performance revealed that both manufacturing and product distribution faced losses attributed to the decline in sales and exacerbated by global economic challenges and trade tensions.
Looking ahead, JADI outlined strategic measures aimed at recuperating its financial standing. These include differentiating its colour product offerings, seeking cost-effective material alternatives, and implementing lean management practices.
Categories : City News
Tags : Business Financials Jadi Sales
