EA Holdings expects to turnaround in FY19 on packaged-food business

-A +A

PETALING JAYA (Sept 6): EA Holdings Bhd may reverse its loss-making position, helped by profit guarantee from its packaged-food unit Sunland Volonte Agency Sdn Bhd. 

EA chief executive officer Mohammad Sobri Saad said EA is likely to see a turnaround in financial year ending March 31, 2019 (FY19). 

"With Sunland's profit guarantee, (for) FY19, we are likely to (see a) turnaround. In terms of our IT businesses, they are still our core. I founded this company to do IT in the first place; we will continue to tender for more projects moving forward, while implementing some cost-cutting measures, mainly by cutting down our workforce.

"Salary is our biggest cost component in our cost structure, about 70% to 80%, and a year ago, we had about 100 staff (employees); we are now down to 80 people," Mohammad Sobri said at a press conference, after the group's annual general meeting today.

According to EA's quarterly report to Bursa Malaysia, EA's FY18 net loss stood at RM7.39 millon versus a net profit of RM3.29 million a year earlier, while revenue declined to RM20.6 million from RM38.7 million.