- E-commerce enabler eCargo (ECG) is expecting a 20 per cent increase in revenue in FY20 compared to FY19
- The company also expects to see a substantial change in earnings before interest, taxes, depreciation and amortisation after recording a loss of $1.2 million last financial year
- ECG believes the improved figures will come from improved business efficiencies and strong online demand from China
- Further details will be provided in eCargo’s full-year report, which is expected to be released to the market by the end of the month
- ECG has ended the day in the grey with shares trading at 3 cents
E-commerce enabler eCargo (ECG) is expecting a 20 per cent increase in revenue in FY20 compared to FY19.
Last financial year, eCargo received $32.5 million in revenue.
The company also expects to see a substantial change in earnings before interest, taxes, depreciation and amortisation (EBITDA), compared to an EBITDA loss of $1.2 million last financial year.
eCargo expects the improved revenue and EBITDA to come from strong online demand from China in 2H FY20.
These increases are also attributable to improved business efficiencies in Q4, continued growth in China, and a strong online presence arising from COVID-19.
“We have seen a strong turnaround in the results for the final quarter of this financial year driven by a significant improvement in eCargo’s distribution trading and business to business eCommerce enabling business services,” CEO Lawrence Lun commented.
“Our business is well positioned to continue to benefit in 2021 from continued demand for overseas products from Chinese consumers as we broaden our product and brand portfolio,” he added.
eCargo will provide further details in its full-year report, which is expected to be released to the market by the end of the month.
ECG has ended the day in the grey with shares trading at 3 cents in an $18.45 million market cap.