EnGro Corporation (S44) H1 2023 earnings summary

Executive summary

• 1H 2023 revenue rose 6.5% YoY to $68.9m, driven by stronger demand for Integral Cement and Ready-Mix Concrete; profit after tax fell 51.5% to $2.5m.

• Lower profit reflected no dividend income from property development investments and weaker Specialty Cement performance in China amid a weakened economy.

Financial highlights

• Revenue was $68.910m vs $64.679m YoY; operating activities result was $1.825m vs $1.001m, up 82.3%.

• Profit before tax fell 45.4% to $2.946m; profit attributable to owners fell 55.7% to $2.167m, and basic and diluted EPS declined to 1.83 cents from 4.12 cents.

• Net finance income declined 31.2% to $2.568m; share of associates’ and joint ventures’ results swung to a $1.447m loss from $0.663m profit.

• Net cash from operating activities was $5.153m; investing activities generated $2.992m and financing activities used $4.512m. Cash and cash equivalents closed at $70.261m.

Outlook and guidance

• Expected to maintain profitability for FY 2023 despite subdued conditions and expected challenges in specialty chemicals and China joint ventures.

• A new batching plant at the Jurong Port Ecosystem RMC Hub was scheduled to begin operations in 3Q 2023, extending project coverage in western Singapore.