Uncertainty over import tariffs by the US and potential retaliatory measures from affected countries may affect consumer demand, says the group on its outlook
HOME-GROWN electronics company Creative Technology saw its net loss widen to US$6.1 million for its first half of the year ended Dec 31, 2024, from US$4.1 million in the corresponding year-ago period.
This was despite net sales for the half-year period rising 18 per cent to US$37.4 million, from US$31.8 million in the corresponding period in the prior year.
The rise was mainly due to higher revenue from new speaker products, said the mainboard-listed company in a bourse filing on Friday (Feb 7).
Loss per share for the half-year came in at US$0.09, up from US$0.06 in the year-ago period.
No dividends were declared for the half-year, unchanged from the year before.
Selling, general and administrative expenses for the half-year period rose 7 per cent to US11.6 million, from S$10.8 million previously.
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Research and development expenses climbed 5 per cent to US$5 million, compared to US$4.8 million in the previous corresponding period.
Uncertainty over the import tariffs announced by the US, as well as potential retaliatory measures from the affected countries, may increase inflationary pressures and affect consumer demand, said the group.
That said, the company plans to introduce a broad range of new products, including speakers. These will position the company to drive revenue growth in the second half of FY2025, it said.
The group expects to record a higher revenue, an improvement in operating results and to report a lower operating loss in the second half.
Shares of Creative Tech closed flat at S$1.12 on Friday, before the announcement.
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