BRC Asia (BEC) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 6% YoY to S$758.3m; gross profit increased 42% to S$74.7m and profit for the period rose 47% to S$38.5m.

• Higher site offtake, improved sales mix, lower inventory costs and stronger higher-margin fabrication contributions supported results despite lower selling prices and weaker international trading volumes.

Financial highlights

• Revenue was S$758.3m vs S$717.1m; cost of sales was S$683.6m vs S$664.3m.

• Gross profit rose to S$74.7m from S$52.7m; gross margin expanded to 9.8% from 7.4%.

• Profit before tax rose to S$47.0m from S$32.7m; profit for the period increased to S$38.5m from S$26.2m.

• EPS increased to 14.04 cents from 9.61 cents; net profit margin rose to 5.1%.

• Other income fell 41% to S$2.2m, while other operating expenses rose 71% to S$5.5m, partly reflecting net FX losses.

Outlook and guidance

• Sales order book stood at S$1.3bn as of 31 March 2024, with project durations up to five years and subject to change.

• Cautiously optimistic on construction demand and order-book growth, while managing credit risk amid near-term offtake challenges.

• Interim tax-exempt cash dividend of 6 cents per ordinary share, representing a 43% payout ratio; payment and book-closure dates to be announced.