Key facts about East 33 Limited's H1 FY24 report

East 33 Limited (ASX: $EAST3) has reported a loss of $4.6 million for the half-year ended 31 December 2023, compared to a loss of $3.3 million in the same period in 2022. The company's total revenue amounted to $12.5 million, down from $13.7 million in the previous year. The farming business has shown signs of recovery from a historic low stock balance, with a modest improvement in earnings before interest, tax, depreciation, amortisation, and impairment to $1.1 million. However, when combined with corporate and sundry losses, the group recorded a loss of $0.6 million before interest, tax, depreciation, amortisation, and impairment.

Executive commentary on financial performance and strategic initiatives

The company's financial performance in the first half of the financial year reflects the ongoing challenges in the farming business, despite positive signs of recovery. We have undertaken a strategic review to identify additional revenue generating activities and expect this to lead to improved financial performance in the future. The new facility agreement with Yumbah Finance and the conversion of RCPS class B have provided the company with the necessary financial support and flexibility to navigate through these challenging times. The appointment of Dr. Justin Welsh as the CEO further strengthens our leadership team and brings in valuable expertise to drive the company's growth and strategic initiatives.

Outlook and future plans

East 33 Limited's financial report for the first half of FY24 reflects the company's efforts to recover from a historic low stock balance in the farming business. The strategic review underway is expected to identify additional revenue generating activities, which, coupled with the financial support from the new facility agreement with Yumbah Finance, is anticipated to improve the company's financial performance in the coming periods. The appointment of Dr. Justin Welsh as the CEO is a strategic move to enhance the leadership team and drive the company's growth initiatives. The company remains focused on adjusting operating expenses and generating future cash flow from operations to ensure its continued viability as a going concern.