Ecofibre Limited (ASX:EOF) Reports Half-Year Financial Results
Financial Performance
Ecofibre Limited reported revenues of $12.783 million for the half-year ended December 31, 2024, marking an 8% decrease from $13.859 million in the previous period. The loss from continuing operations after tax was $17.343 million, a 61% improvement compared to a loss of $44.730 million in the prior half-year. Losses from discontinuing operations also decreased by 51%, amounting to $397,000 compared to $848,000. The total comprehensive loss stood at $15.476 million, a 67% reduction from $46.950 million.
Strategic Initiatives
During the half-year, Ecofibre focused on its Cash Positive Plan, aiming to return to positive operating cash flows and reduce financial risk. The company continued restructuring its business portfolio, including active discussions to sell its 100% interest in Ecofibre Genetics and completing a sale and leaseback arrangement for its properties in North Carolina and Kentucky. Additionally, Ecofibre entered into an agreement with Under Armour Inc. to supply NEOLAST™ yarns, financed by Under Armour over 36 months at a 12% interest rate.
Future Outlook
Ecofibre remains committed to strengthening its core businesses and executing cost reduction measures. The company plans to conclude the sale of the Seed Genetics business by March 2025 to enhance its financial position. Ecofibre also aims to achieve positive operating cash flows through continued revenue growth in its Advanced Technologies division and strategic asset monetization.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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