ESGL Holdings Limited Reports First Half 2024 Financial Results

Operating Subsidiary Achieves First Profitable Half Year, Optimistic Outlook for Second Half

SINGAPORE, Sept. 20, 2024 (GLOBE NEWSWIRE) -- ESGL Holdings Limited $(ESGL)$ ("ESGL" or the "Company"), a leading carbon neutral, innovative enviro-tech company regenerating industrial waste into circular products, today announced its financial results for the six-month period ended June 30, 2024.

First Half 2024 Highlights:

   -- First-Time Subsidiary Profitability: ESGL's operating subsidiary posted 
      its first-ever profitable half-year, a significant milestone compared to 
      the loss recorded in first half of 2023. 
 
   -- Revenue Growth: Revenue for the first half of 2024 increased to US$3.49 
      million, a 2.8% improvement from the prior year, despite regulatory 
      challenges and volatility in waste volumes. 
 
   -- Significant Reduction in Losses: Loss before taxation improved by 45.3%, 
      reduced from US$590,000 in the first half of 2023 to US$322,000, driven 
      by strict cost management and operational efficiencies. 
 
   -- Logistics Cost Savings: Logistics costs were reduced by US$527,000, a 
      66.6% decrease year-on-year, significantly improving the Company's cost 
      base. 

Operational and Segment Performance:

   -- Solid Waste Thermal Processing Solutions: Revenue grew by 8.15%, 
      underpinned by the collection of new waste types and the expansion of the 
      Company's customer base. 
 
   -- Liquid Waste Synthesis Solutions: Revenue in this segment declined by 
      45.8% due to the regulatory impact on a key customer. However, the 
      Company expects recovery in the second half of 2024. 
 
   -- Circular Products Sales: Sales declined by 39.1% due to lower demand for 
      base metals, though the Company remains optimistic about improving market 
      conditions. 
 
   -- Other Income: Foreign exchange gains contributed to a US$93,000 increase 
      in other income, reflecting favorable currency movements. 

Outlook for the Second Half of 2024:

ESGL is optimistic about its performance in the second half of 2024, driven by a focus on expanding its solid hazardous waste customer base and regaining liquid hazardous waste volume, while maintaining operational efficiency and achieving cost savings. Additionally, the Company is actively working to renew long-term contracts with key clients to sustain and enhance profitability.

CEO Statement:

Quek Leng Chuang, Chief Executive Officer and Chairman of ESGL, commented: "We are proud to report that our operating subsidiary has achieved its first profitable half-year. This significant milestone reflects the strength of our strategic focus on cost efficiency and operational optimization. As we look toward the second half of 2024, we remain confident in our ability to drive sustained growth across our core segments and continue to build momentum toward long-term profitability."

About ESGL Holdings Limited

ESGL Holdings Limited is a Singapore-based carbon-neutral enviro-tech company dedicated to transforming industrial waste into circular products. With a commitment to sustainable waste management solutions, ESGL is a leading player in the environmental solutions industry. ESGL conducts all its operations through its operating subsidiary incorporated in Singapore, Environmental Solutions (Asia) Pte. Ltd. For more information, including the Company's filings with the SEC, please visit https://esgl.asia.

Investor Relations Contact:

ESGL Holdings Limited

Investor Relations Department

Email: ir@esgl.asia

Phone: +65 6653 2299

Forward-Looking Statements

Certain statements in this press release may be considered to contain certain "forward-looking statements" within the meaning of "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "target," "believe," "expect," "will," "shall," "may," "anticipate," "estimate," "would," "positioned," "future," "forecast," "intend," "plan," "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Examples of forward-looking statements include, among others, statements made in this press release regarding anticipated future financial and operating performance and results, including estimates for growth, gross margins, adjusted EBITDA, potential regional expansion, development of new products, partnerships, customer relationships, demand for waste processing, and sales of circular products. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on ESGL management's current beliefs, expectations, and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results and outcomes may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. A further list and description of risks and uncertainties can be found in documents filed with the Securities and Exchange Commission ("SEC") by ESGL and other documents that the Company may file or furnish with the SEC, which you are encouraged to read. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise, except as required by law.

ESGL Holdings Limited

Consolidated Statement of Financial Position

As at June 30, 2024 and December 31, 2023

 
 
                                     June 30, 2024   December 31, 2023 
                                          US$               US$ 
ASSETS 
Current assets 
Cash and cash equivalents                 256,501            366,761 
Trade and other receivables               985,951          1,032,522 
Prepaid forward purchase agreement              -                969 
Inventories                                78,682             64,184 
                                     ------------   ---------------- 
                                        1,321,134          1,464,436 
                                     ------------   ---------------- 
Non-current assets 
Property, plant and equipment, net     21,043,668         21,786,365 
Intangible assets, net                  2,475,974          2,381,465 
                                       23,519,642         24,167,830 
                                     ------------   ---------------- 
 
Total assets                           24,840,776         25,632,266 
 
LIABILITIES 
Current liabilities 
Trade and other payables                5,503,478          6,560,559 
Lease liabilities                         149,516            192,282 
Borrowings                              4,672,286          5,666,160 
Deferred underwriting fee payable       2,153,125          2,753,125 
Tax liabilities                           203,020             56,540 
                                       12,681,425         15,228,666 
                                     ------------   ---------------- 
 
Non-current liabilities 
Lease liabilities (non-current)         1,852,343          1,974,524 
Borrowings (non-current)                        -            112,319 
Deferred tax liabilities                  298,000            296,000 
                                     ------------   ---------------- 
                                        2,150,343          2,382,843 
                                     ------------   ---------------- 
 
Total liabilities                      14,831,768         17,611,509 
 
Net assets                             10,009,008          8,020,757 
 
EQUITY 
Share Capital                              11,892             10,892 
Accumulated losses                   (100,457,352)       (99,985,928) 
Other reserves                          3,422,799          3,422,799 
Share premium reserve                  92,183,727         89,725,052 
Exchange Reserves                        (123,198)          (123,198) 
Revaluation Surplus                    14,971,140         14,971,140 
Total equity                           10,009,008          8,020,757 
                                     ============   ================ 
 
 
 

ESGL Holdings Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Financial

Periods ended June 30, 2024 and 2023

 
                                              June 30, 2024   June 30, 2023 
                                                   US$             US$ 
Revenue                                          3,487,879      3,394,313 
 
Other income                                       282,213        189,335 
 
Cost of inventory                                  (78,366)      (407,291) 
 
Logistics costs                                   (264,638)      (792,079) 
 
Depreciation of property, plant and 
 equipment                                        (781,394)      (758,519) 
 
Amortization of intangible assets                 (559,340)      (426,515) 
 
Employee benefits expense                         (878,320)      (639,060) 
 
Finance expense                                   (147,128)      (158,912) 
 
Other operating expenses                        (1,383,850)      (991,526) 
Loss before income tax                            (322,944)      (590,254) 
 
Income tax expense                                (148,480)       (39,000) 
 
Net loss and comprehensive loss                   (471,424)      (629,254) 

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