FAST-MOVING consumer goods manufacturer and distributor PSC Corporation reported a profit of S$11.2 million for the first six months of FY2024, an increase of 14 per cent from the previous year, the group said in a bourse filing on Thursday (Aug 8).
Revenue for H1 was up 2.1 per cent to S$243.4 million on higher sales from its consumer business in Singapore and packaging business in China. It also reported higher sales from its Malaysia consumer business, though this contribution was offset by currency conversion.
The results included first-time contributions from the group’s new subsidiaries Kim Guan Guan Coffee Trading and Kim Guan Guan Coffee Roaster, which it acquired in April for an aggregate consideration of S$1.6 million.
The group’s gross profit rose 9.9 per cent to S$57.9 million, which it attributed to lower cost per unit from its packaging business, thanks to higher utilisation and lower material cost.
As a result, its overall gross profit margin rose 1.7 points to 23.8 per cent.
Earnings per share stood at 2.04 Singapore cents for the half, up from 1.78 cents in the previous corresponding period.
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A proposed interim dividend of 0.5 Singapore cent per share will be payable on Sep 26, 2024.
Sam Goi, PSC’s executive chairman, said: “We are pleased that our businesses are off to a good start in the first half of the year, despite the strong Singapore dollar which dampened our operations in Malaysia. However, we envisage that we are on a robust footing with our positive net cash position and strong balance sheet.”
In the update, the group noted that its consumer business revenue grew at a slower pace compared to H1 2023, and that geopolitical tensions, port congestion and inflation pressure continue to increase freight and operational costs. But it said that it will leverage its large portfolio of consumer brand assets for building growth and business resilience and actively explore new opportunities.
Shares of the counter closed flat at S$0.325 on Thursday before the results were announced.
