Bonvests Holdings (B28) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 13.1% YoY to S$105.372m, led by hotel recovery; EBITDA fell 4.5% to S$23.684m, while net results swung to a S$1.227m loss from S$4.788m profit.

• Higher finance costs and weaker Rental and Industrial contributions offset Hotel growth; operating cash flow remained positive at S$19.832m.

Financial highlights

• Revenue increased 13.1% to S$105.372m; profit before tax declined to S$1.136m from S$6.440m.

• Net loss after tax was S$1.227m versus net profit of S$4.788m in H1 2022; basic and diluted EPS were both (0.265) cents versus 1.235 cents.

• EBITDA decreased 4.5% to S$23.684m; finance costs rose to S$9.172m from S$3.621m, driven by higher rates and additional borrowings.

• Net cash from operating activities was S$19.832m; cash and cash equivalents ended the period at S$22.772m.

Outlook and guidance

• Douz and Medina of Tunis hotel construction is ongoing; operational completion is scheduled by end-2023 and end-2024, respectively, barring unforeseen circumstances.

• Management expects adequate cash flows for the next 12 months through cash balances, bank facilities and operating cash flows, alongside cash conservation and deferred non-essential capex.

• Industrial operations will focus on cost and cash management, operational optimization and securing contracts amid elevated cost pressures.