Aspial Corporation (A30) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 4.5% YoY to S$295.9m; pre-tax profit was S$5.2m versus a S$13.5m loss in H1 2023, while profit for the period was S$1.7m.

• Loss attributable to owners narrowed 56% YoY to S$6.6m; basic and diluted EPS after perpetual securities distributions improved to -0.30 cents from -0.69 cents.

Financial highlights

• Revenue increased 4.5% to S$295.9m, driven by retail and financial services growth, partly offset by lower real estate revenue.

• Total operating expenses fell 3.1% to S$114.9m, supported by lower finance costs and FX losses; employee benefits and depreciation and amortisation increased.

• Finance costs decreased 10% YoY to S$24.5m; other operating expenses decreased 14% to S$35.5m.

• Net cash used in operating activities was S$26.0m, versus S$2.6m in H1 2023, mainly reflecting higher receivables and inventories.

Outlook and guidance

• Cautiously optimistic for H2 2024; anticipated interest-rate cuts could benefit financial services, retail and real estate, while geopolitical risks remain.

• Retail is expected to perform reasonably well in H2, supported by consumer sentiment and gold jewellery demand; Malaysian pawnbroking is expected to contribute positively in FY2024.

• FY2024 real estate performance, excluding FX, tax and revaluation gains or losses, is expected to improve through better apartment margins, hotel revenue and lower holding costs and interest expense.

• Overall FY2024 financial performance is expected to exceed FY2023, barring adverse FX movements, tax and revaluation adjustments.