Oasis Harvest Q1 revenue drops to RM2.72m amid streamlined F&B operations
The decline in revenue for the quarter, from RM3.72 million in the same quarter last year, was primarily due to the streamlined operations in the 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.
Commenting on the quarterly results, executive director Ch'ng Eu Vern said the reported loss for Q1 FY25 was largely influenced by strategic operational restructuring aimed at ensuring its future growth remains sustainable.
'While the closure of some outlets impacted our immediate revenues, these decisions were necessary steps to maintain cost discipline and improve the overall operational efficiency of our restaurant business,' he said.
Ch'ng further explained the difference in comparative profitability, noting, 'It's important to highlight that the corresponding quarter last year included a RM2.1 million contingent consideration waiver, which positively impacted our results previously.
'Excluding this exceptional item, our current financial performance is aligned with expectations, reflecting ongoing adjustments designed to deliver longer-term financial stability and improved shareholder returns,' he said.
Despite the near-term challenges, Oasis successfully generated positive cash flow from operating activities amounting to RM0.86 million during the quarter, indicating healthy underlying operational efficiency and prudent management of working capital.
Moving forward, Oasis remains confident in its long-term strategic direction.
'We continue to invest in improving customer experiences, refining our menu offerings, and enhancing cost control measures across all outlets.
'These initiatives are critical for guaranteeing sustainable growth and delivering consistent value to our shareholders over the long run,' Ch'ng added.
The group maintains a cautiously optimistic outlook, bolstered by its strategic position in the Klang Valley, which continues to show resilience even amid global economic uncertainties.
Oasis remains committed to strengthening its F&B business, exploring complementary sectors within the travel, leisure, and hospitality ecosystem to diversify revenue streams and enhance shareholder value.
Ch'ng said Oasis remains confident in its long-term strategic direction.
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