Bonvests Holdings (B28) H1 2024 earnings summary

Executive summary

• H1 2024 revenue was S$108.991m, up 3.4% YoY, led by Industrial; EBITDA was S$21.682m, down 8.5%, mainly on higher Hotel operating expenses.

• Loss before tax was S$1.911m versus profit before tax of S$1.136m in H1 2023; loss after tax was S$2.236m versus S$1.227m.

Financial highlights

• Revenue rose 3.4% to S$108.991m; Industrial revenue growth offset slight declines in Hotel revenue.

• Finance costs increased 5.7% to S$9.699m, mainly due to higher interest rates; depreciation rose 3.9% to S$14.124m, partly reflecting Douz hotel operations.

• Income tax expense was S$0.325m, down from S$2.363m in H1 2023.

Outlook and guidance

• Rental operations are expected to remain stable; hotel market conditions are expected to remain challenging amid increased supply and higher operating costs.

• Medina hotel construction is ongoing and, barring unforeseen circumstances, is scheduled for operational completion by mid-2026.

• Industrial is expected to face intense competition, rising material costs, dumping fees and wage expenses; Investment results remain exposed to stock-market volatility.

• The Development Division has no active projects; outlook statements are subject to economic, industry, competition and supply-demand uncertainties.