GP Industries (G20) investor relations material

Executive summary

• FY2026 revenue declined 0.9% YoY to S$1,094.5m, while profit attributable to equity holders rose 16.9% to S$28.4m; improved associate earnings and lower finance costs supported profit growth.

• Profit before tax increased 17.9% to S$61.9m; profit before finance costs and share of associates fell 2.7% to S$66.2m, reflecting lower gross profit and other operating income.

Financial highlights

• Gross profit was S$319.6m versus S$330.2m; gross margin fell to 29.2% from 29.9%, pressured by U.S. tariffs and pricing competition.

• Profit after taxation was S$44.1m versus S$40.1m; basic EPS rose to 5.65 Singapore cents from 4.90 cents.

• Distribution costs declined 5.1% to S$139.3m and administrative expenses declined 1.0% to S$128.2m, reflecting cost control and organizational efficiency measures.

• Operating cash flow was S$80.5m versus S$73.0m; net cash used in investing was S$34.6m and net cash used in financing was S$44.9m.

Outlook and guidance

• FY2027 conditions expected to remain challenging amid geopolitical tensions, evolving trade policies, inflation and subdued consumer confidence; margin normalization expected as tariff refunds and Southeast Asia ramp-up ease transitional costs.

• China’s battery export VAT rebate is scheduled for full elimination by January 2027, adding ~13% to factory costs for China-based battery exports; industry adjustment is expected over 12–18 months.

• Priorities include Southeast Asia capacity expansion, specialty and rechargeable batteries, premium acoustics, product development, brand investment, operational efficiency and sustainability.

• Wisefull is positioned to benefit from AI and data-center cooling demand; divestment of non-core properties in China and Malaysia remains planned, with transaction timing affected by property-market conditions.