CREATIVE Technology posted a net loss of US$6.8 million for its second half ended Jun 30, up 10 per cent from a net loss of US$6.1 million over the same period a year earlier.
This was despite revenue for the period climbing 11 per cent to US$31 million, from US$28 million a year earlier.
Loss per share for the half year stood at US$0.10, compared with US$0.09 a year ago.
In its results release on Friday (Aug 23), Creative said that US$1.1 million of losses were due mainly to foreign exchange losses. In particular, they resulted from the depreciation of currencies such as the euro and yen against the US dollar, but were partially offset by the appreciation of the Singapore dollar against the US dollar.
Still, the company noted that it was able to achieve a higher gross profit margin of 30 per cent for H2, compared with 29 per cent a year ago, due to higher margin contributions from newly launched products.
For the full year, the company narrowed its net loss by 35 per cent to US$10.8 million as revenue climbed 12 per cent to US$62.8 million.
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No dividends have been recommended for H2 FY2024, as was the case for the same period in FY2023.
Creative said that the market remains challenging worldwide as middle-class consumers continue to be squeezed by inflation.
It added that its speaker business has grown in sales quantity and revenue as it enters the premium segment, and that its headphone category will be an important growth area as well.
“We are taking necessary action to consolidate and lower our cost structure to reach profitability sooner,” the company said.
“With the above efforts, for FY2025 and the first half year of FY2025, the group expects an improvement in revenue and operating results.”
Creative shares fell 4 per cent or S$0.05 to S$1.20 on Friday, before the results were released.
