FOOD and beverage (F&B) group Yeo Hiap Seng reported a net profit of S$3.2 million for the half year ended Jun 30, 2024, down 3.8 per cent from S$3.3 million in the year-ago period.
The decline was a result of lower sales for non-Yeo’s products, foreign currency impact and freight disruptions, said the group in a bourse filing on Tuesday (Aug 6).
Revenue decreased 8.7 per cent to S$165.3 million for H1 FY2024, from S$181.1 million for H1 FY2023, mainly due to the movements in foreign exchange rates and lower sales volume of non-Yeo’s core revenue.
Revenue from its core F&B business also dropped 4.1 per cent year on year to S$152 million due to foreign currency translation. Excluding this, core F&B revenue would have remained “relatively unchanged” compared to the same period last year, with sales growth in Malaysia and Singapore offsetting the weaker demand in other markets, it said.
Earnings per share stood at S$0.0052 for the half year, compared with S$0.0055 in H1 FY2023.
Gross profit margin inched up 0.2 percentage point to 32.7 per cent in H1, which the group attributed to its efforts in “cost optimisation and streamlining of its product portfolio”, offsetting the cost of inflation.
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Meanwhile, administrative expenses fell 14.3 per cent year on year to S$17.1 million with tighter cost controls, and income tax expense decreased by S$2 million in H1 FY2024 to S$1.5 million due to the absence of under provision of prior years’ deferred tax, it said.
No dividend was declared for the current financial period. The company said it “does not have a standing practice of declaring interim dividends”.
Moving forward, the group said consumer sentiments remain cautious in its key markets due to economic uncertainties. It said its focus remains on executing the group’s brand strategy and upgrading of its IT systems.
“These initiatives are aimed to strengthen the group’s business foundation to achieve higher growth and create sustainable value for customers and shareholders,” it said.
Shares of Yeo Hiap Seng closed flat at S$0.525 on Tuesday, before the results was announced.
