MAIN Board- listed food & beverage (F&B) player Oasis Harvest Corp Bhd (formerly Dolphin International Bhd) has posted net loss of RM948,000 (1Q FY2024: RM1.54 mil) on the back of RM2.72 mil in revenue for its 1Q FY2025 ended March 31, 2025.
The decline in revenue for the quarter under review from RM3.72 mil in the corresponding period last year was primarily due to the streamlined operations of the group’s food and beverage (F&B) segment.
Oasis had strategically reduced its Uncle Don’s restaurant outlets from six to three in line with its ongoing efforts to optimize costs and enhance profitability.
“The reported loss for 1Q 1FY2025 was largely influenced by strategic operational restructuring aimed at ensuring our future growth remains sustainable,” commented Oasis Harvest’s executive director Ch’ng Eu Vern.
“While the closure of some Uncle Don’s outlets impacted our immediate revenues, these decisions were necessary steps to maintain cost discipline and improve the overall operational efficiency of our restaurant business.”
In comparing last year’s profitability with this year’s loss, Ch’ng highlighted that the net profit recorded in 1Q FY2024 included a RM2.1 mil contingent consideration waiver which positively impacted Oasis Harvest’s results.
“Excluding this exceptional item, our current financial performance is aligned with expectations, reflecting on-going adjustments designed to deliver longer-term financial stability and improved shareholder returns,” he justified.
Despite its near-term challenges, the group successfully generated positive cash flow from operating activities amounting to RM860,000 during the 1Q FY2025 quarter, an indication of healthy underlying operational efficiency and prudent management of working capital.
Moving forward, Oasis Harvest remains confident in its long-term strategic direction with the group poised to continue investing in improving customer experiences, refining its menu offerings and enhancing cost control measures across all its F&B outlets.
“These initiatives are crucial to ensuring sustainable growth and delivering consistent value to our shareholders over the long run,” added Ch’ng.
As it is, Oasis Harvest maintains a cautiously optimistic outlook, bolstered by its strategic position in the Klang Valley which continues to show resilience even amid global economic uncertainties.
The group remains committed to strengthening its F&B business by exploring complementary sectors within the travel, leisure and hospitality ecosystem to diversify its revenue streams and enhancing shareholder value.
At today’s (May 20) mid-day trading break, Oasis Harvest was down 0.5 sen or 3.03% to 16 sen with 165,800 shares traded, thus valuing the company at RM24 mil. – May 20, 2025
