AMOS Group (49B) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 25% YoY to S$74.5m; EBITDA was a S$4.4m loss as cost reductions lagged the sales decline.

• Loss before tax widened to S$24.5m, including S$9.9m of non-financial asset impairments and S$1.3m of restructuring costs; excluding these items, the loss was S$13.3m.

• Lower working capital, reduced borrowings and higher cash supported the balance sheet; streamlining and a focus on higher-yield products remain priorities.

Financial highlights

• Revenue was S$74.5m versus S$99.4m in FY2023; supply-chain disruptions and removal of lower-profitability or lower-cash-flow offerings contributed to the decline.

• Gross profit fell 25.7% to S$16.0m; gross margin was 21.5%, compared with 21.7% in FY2023.

• Distribution and administrative expenses decreased by S$2.7m combined; distribution costs were S$8.6m and administrative expenses S$19.0m.

• Net loss was S$24.6m versus S$11.8m; total comprehensive loss was S$25.2m versus S$8.1m.

• Net operating cash flow was S$6.7m versus S$3.4m, supported by a S$11.7m working-capital inflow.

Outlook and guidance

• Sharper procurement, productivity improvements and focused offerings for strategic customers are priorities to improve service and grow sales.

• Additional cost-saving measures and global streamlining are underway, with a stated focus on reasonable profitability and positive cash flow.

• ALCONA’s Advanced Hydration System demand is increasing; hundreds of vessels use it, with more than 42 million plastic bottles expected to be eliminated by end-2024.