Enviro-Hub (L23) H2 2023 earnings summary

Executive summary

• FY2023 continuing-operations revenue fell 3% to S$40.3m, while gross profit rose 3% to S$7.5m and gross margin expanded to 19%.

• Recycling growth and positive operating cash flow of S$8.9m supported performance; healthcare weakness and discontinued piling weighed on earnings.

Financial highlights

• Revenue from continuing operations was S$40.291m versus S$41.740m; gross profit was S$7.534m versus S$7.306m.

• Operating results were S$7.916m versus S$9.118m; continuing-operations profit before tax was S$4.790m versus S$7.108m.

• Net profit was S$3.902m versus S$6.175m; continuing-operations profit was S$4.053m versus S$7.322m, partly offset by discontinued-operations loss of S$0.151m.

• Reported other income included S$4.428m fair-value gains on investment properties, S$1.638m compensation receivable from a subsidiary director and S$0.892m vendor debt waiver.

Outlook and guidance

• E-waste recycling outlook remains favorable; refinery plant completion and new Cimelia contracts are expected to lift revenue contribution in 2024.

• Plans include opening more Malaysian pharmacy outlets, while continuing expense rationalisation, cash-flow discipline and core-business streamlining.

• Glove-market recovery, stable ASPs and easing supply pressure are expected to support utilization and operating leverage; raw-material and Malaysian natural-gas prices are expected to remain stable in 2024.