Yeo Hiap Seng’s H2 profit up 9% on Oatly compensation, higher sales

HIGHER sales volumes and compensation from oat milk maker Oatly lifted the net profit of Yeo Hiap Seng (YHS) by 9 per cent to S$3.7 million, for the six months ended Dec 31, 2024.

The company’s revenue for the half-year rose 7.7 per cent to S$163.2 million. The rise was driven by higher sales volume in Malaysia, Singapore and Indonesia, leading to a 6.9 per cent rise in food and beverage revenue to S$147.4 million. This came even as sales in China and Hong Kong fell.

The company also booked a net profit of S$7.3 million for the year from the closure of Oatly’s Singapore manufacturing facility, for which it was compensated.

Its board proposed a final dividend of S$0.02 per share, unchanged from the previous corresponding period. The payment date has yet to be announced.

For the full year, however, YHS’ revenue fell 1.2 per cent to S$328.6 million, due to lower sales volume in what it dubbed the “co-packing revenue” segment. It also cited challenges in the China, Hong Kong, and US markets. Its FY2024 net profit rose 2.6 per cent to S$6.9 million.

The company also recorded an assets/investments impairment of S$7.7 million, which it attributed to the “challenging operating environment, particularly in China and Singapore”.

Looking ahead, YHS expressed “cautious optimism” about improving inflation. It plans to focus on higher-margin products and improve operational efficiency. “Initiatives aimed at enhancing productivity and managing cost dynamics will also be key priorities,” said YHS.

The group “will also explore growth opportunities in emerging markets, where long-term potential aligns with its strategic objectives”, it added.

YHS shares ended Friday at S$0.58, up 0.9 per cent.