Aspial Lifestyle (5UF) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 47.8% to S$471.6m, driven mainly by the jewellery business acquired in 4Q2022 and higher pawnbroking interest income; profit before tax increased modestly to S$23.7m.

• Regional expansion continued with the Malaysian pawnbroking business; in February 2024, the secured-lending platform BigFundr became a subsidiary after the stake increased to 70%.

Financial highlights

• Revenue was S$471.581m versus S$319.008m in FY2022; profit before tax was S$23.699m versus S$21.804m.

• Net profit was S$19.772m versus S$16.077m; profit attributable to owners was S$19.191m versus S$15.984m.

• Operating costs rose S$40.0m, mainly from higher marketing, staffing and depreciation tied to acquired jewellery operations and Malaysian subsidiaries; finance costs also increased with borrowings and rates.

• Finance costs increased to S$29.708m from S$17.402m; other income declined to S$4.099m from S$5.080m.

Outlook and guidance

• FY2024 jewellery and branded merchandise operations are expected to maintain momentum through back-end refinements and closer coordination across business units.

• Pawnbroking outlook is positive on healthy short-term loan demand; Malaysia operations are expected to contribute positively, with cautious optimism.

• Singapore GDP growth is forecast at 1%–3%, versus 1.1% in 2023; elevated rates, rising costs and geopolitical tensions remain headwinds.