Ecocare Prima (HYGN) Records 24.7% Profit Growth in Q3 2024

IQPlus, (2910) - PT Ecocare Indo Pasifik Tbk (HYGN), a pioneer in the national hygiene and pest control services industry, is proud to announce its financial results for the third quarter ended September 30, 2024 (Q3FY24) which showed healthy revenue and profit growth amidst a challenging economic landscape.

In HYGN's press release (28/10) it was stated that in Q3FY24, the company reported stable revenue growth of 0.3% quarter-on-quarter (QoQ) and 26.7% year-on-year (YoY), while net profit / profit after tax (.PAT.) grew 24.7% QoQ and 6% YoY.

For the cumulative period ended September 30, 2024 (9MFY24), HYGN achieved a revenue increase of 30.8% Y-o-Y compared to the same period in 2023 (.9MFY23.), driven by strong performance across all three business divisions.

Revenue from hygiene/sanitation services increased by 10.6%, from Rp110.93 billion in 9MFY23 to Rp122.67 billion in 9MFY24. Cleaning services saw a surge of 68.6%, from Rp45.8 billion last year to Rp77.23 billion, and pest control services saw a 66.9% increase, from Rp14.38 billion to Rp24 billion. This strong growth reflects strong market demand across all business segments.

Despite the revenue growth, margin and net profit/PAT declined by 7.7% Y-o-Y in 9MFY24, from IDR11.21 billion in 9MFY23 to IDR10.35 billion.

This was mainly due to sales mix, higher costs incurred due to expansion into new markets, and some one-off costs such as listing costs in the form of ESA/ESOP in FY24, less other distributable income on sale of one-off assets, etc. Excluding one-off costs, the company’s total net profit/PAT this year would be higher than the same period last year.

HYGN’s balance sheet remains healthy with cash of IDR25.3 billion and a low debt ratio, indicating the company’s prudent financial stance and liquidity.

Entering the fourth quarter, HYGN remains optimistic about the outlook for the remainder of 2024. With the expected increase in seasonal demand during the year-end period, the company is on track to achieve its annual sales growth target. HYGN's focus is to continue improving the company's performance and continue existing projects that are already underway and carry out operational cost efficiency initiatives.

Commenting on the quarter and year, HYGN's Group Chief Executive Officer, Wincent Yunanda, highlighted the Company's achievements so far in 2024 despite facing various macroeconomic challenges: "Q3 FY2024 has been an extension of our year so far, a busy quarter. Following the IPO this year, the company continues to strive to increase revenue, build internal infrastructure, expand into new markets, and initiate rebranding efforts. These initiatives have slightly affected our profit margin in the short term, but are important efforts to create a strong foundation for our sustainable growth in the future".

On its financials, HYGN remains steadfast in its efforts to maintain profit growth with good margins: "Since the beginning of 2024, excluding one-time costs, our core profit for the year has actually increased double digits year-on-year by 16.9%. Although we are seeing margin compression due to our current aggressive expansion efforts, we continue to take action on costs and strive to return to double digit margins and beyond," Wincent added.

HYGN closed 9 months of 2024 with an annualized book and contract portfolio of IDR296 billion as of September 2024. (end)