Ascent Bridge (AWG) H2 2024 earnings summary

Executive summary

• FY2024 focused on expanding Moutai Bulao across duty-paid and duty-free channels; sales coverage reached 13 countries/23 cities in duty-paid markets, with 18 international airline partnerships.

• Strategic priorities include widening the liquor portfolio and developing Mainland China distribution through a joint venture with Dong Ying Quan Li Quan Wai International Trading Co Ltd (QLQW).

Financial highlights

• FY2024 revenue was S$3.731m, down 5.5% from S$3.948m; FY2024 covers 12 months while FY2023 covers 15 months, limiting comparability.

• Gross profit fell to S$1.511m from S$2.340m; gross margin declined to 41% from 59%, amid pricing pressure in Hong Kong and Macau.

• Net loss attributable to owners narrowed to S$4.671m from S$8.757m; basic and diluted loss per share improved to 5.36 cents from 10.06 cents.

• Other gain of S$11.795m included a S$7.219m fair-value gain on the put option and S$4.576m gain from derecognising contingent consideration; other losses included S$6.831m goodwill impairment.

• Operating cash outflow was S$6.240m; cash and cash equivalents fell to S$1.301m from S$8.078m at 31 March 2023.

Outlook and guidance

• Outlook is cautiously optimistic, with plans to expand product and brand portfolios, enter new markets, improve customer experience and drive operational excellence.

• Growth plans include leveraging existing global channels to introduce additional Chinese liquor ranges and developing entry-, mid- and premium-tier SKUs.

• Management expects rights-issue proceeds and the QLQW joint venture to support China and global distribution growth; execution depends on funding and regulatory approvals.