Fu Yu Corporation (F13) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 20.7% YoY to S$190.4m amid softer demand, resulting in a S$10.1m net loss versus S$14.6m net profit in FY2022.

• H2 2023 revenue rose 0.7% YoY to S$119.2m; FY2024 performance is expected to improve, barring unforeseen circumstances.

Financial highlights

• FY2023 gross profit fell to S$13.3m from S$37.6m; gross margin narrowed to 7.0% from 15.7%, reflecting revenue mix changes and higher manufacturing costs.

• H2 2023 net loss was S$6.3m versus net profit of S$3.7m in H2 2022; gross profit was S$6.9m versus S$16.6m.

• FY2023 net loss included S$2.7m non-cash goodwill impairment and S$0.5m forex loss; excluding these items, net loss was S$6.9m.

Outlook and guidance

• FY2024 performance is expected to improve YoY, supported by cost containment, transformation initiatives, higher contributions from export tooling and biomedical markets, and new customers.

• Recovery across Singapore, Malaysia and China is expected to be gradual, with momentum building toward H2 2024, particularly in medical and consumer markets.