AMOS Group (49B) H1 2024 earnings summary

Executive summary

• 1H FY2024 revenue fell 15.9% YoY to S$40.8m; net loss narrowed 11.2% to S$6.1m as improved gross margin and lower operating costs partly offset weaker sales.

• Operating cash flow rose to S$5.1m from S$2.8m, while cash and bank balances increased to S$8.6m at 30 September 2023.

Financial highlights

• Gross profit declined 10.3% to S$8.7m; distribution costs fell 19.3% to S$4.1m and administrative expenses fell 7.4% to S$9.9m.

• Loss before tax was S$6.0m versus S$6.9m; total comprehensive loss was S$6.1m versus S$7.2m in 1H FY2023.

• Finance costs increased 21.0% YoY to S$0.75m, primarily due to higher interest rates.

• Adjusted for the benefit of foreign-exchange gains and lower non-recurring consultancy expenses, other operating expenses fell 93.0% YoY.

Outlook and guidance

• Subdued core-client activity could weigh on sales and profit in 2H FY2024; cost controls, working-capital efficiencies, supply-chain improvements, and new products and customers are priorities.