Fu Yu Corporation (F13) Q1 2023 TU earnings summary

Executive summary

• 1Q23 revenue fell 58.0% YoY to S$36.0 million as manufacturing and supply chain services sales contracted; the period ended in a S$2.4 million net loss.

• A five-year transformation plan is underway, focused on higher-precision manufacturing, medical and biomedical opportunities, and stronger operational capabilities.

Financial highlights

• Revenue declined to S$36.0 million in 1Q23 from S$85.6 million in 1Q22; manufacturing revenue was S$26.3 million versus S$36.3 million, and supply chain services revenue was S$9.7 million versus S$49.3 million.

• Gross profit fell to S$3.6 million from S$11.4 million; net loss was S$2.4 million versus net profit of S$6.0 million in 1Q22.

Outlook and guidance

• Existing business conditions are expected to remain slow and uncertain in the short term until transformation initiatives and the biomedical business deliver benefits.

• Efforts to mitigate near-term pressure include pursuing opportunities with existing and new customers to lift capacity utilisation while maintaining an optimal operating cost structure.