Aspial Lifestyle (5UF) H1 2023 earnings summary

Executive summary

• 1H2023 revenue rose 62% YoY to $228.8m, while profit before tax increased 8% to $12.4m; higher costs and finance charges limited earnings growth.

• Growth was led by jewellery and branded merchandise following an acquisition in 2H2022, alongside higher pawnbroking income; secured lending revenue fell sharply.

• The outlook anticipates continued profitability in FY2023, with jewellery retail expected to benefit from pre-GST buying and year-end festive demand, barring unforeseen circumstances.

Financial highlights

• Revenue was $228.816m, up 62% YoY; material costs rose 57% to $149.033m, broadly in line with higher revenue.

• Profit before tax increased 8% to $12.415m; profit for the period was $9.750m versus $9.308m in 1H2022.

• Net foreign exchange loss was $1.5m; excluding this loss, 1H2023 profit before tax would have been $13.9m.

• Employee benefits rose 82% to $23.902m, depreciation and amortisation rose 95% to $14.469m, and finance costs rose 117% to $13.982m.

Outlook and guidance

• Singapore’s 2023 GDP growth forecast was maintained at 0.5%–2.5%, with growth expected near the midpoint; consumer sentiment was cautious amid global uncertainties.

• Jewellery and branded merchandise retail was expected to perform positively in 2H2023, supported by pre-GST-hike effects and year-end festive buying.

• Barring unforeseen circumstances, the businesses were expected to continue growing and remain profitable in 2023.