Fu Yu Corporation (F13) Q3 2023 TU earnings summary

Executive summary

• 3Q23 revenue fell 7.5% YoY to S$33.1 million; 9M23 revenue declined 34.0% to S$104.3 million, with softer manufacturing and supply chain services activity.

• 9M23 net loss was S$5.8 million, versus net profit of S$15.6 million in 9M22.

Financial highlights

• 9M23 gross profit contracted to S$9.5 million from S$29.5 million in 9M22, in line with lower revenue.

• Manufacturing gross profit fell to S$9.2 million from S$27.1 million; lower sales caused fixed-cost under-absorption.

Outlook and guidance

• Operating conditions are expected to remain challenging amid elevated interest rates, macroeconomic slowdown, inflation and higher cost pressures.

• Priorities include strengthening the business foundation, maintaining balance-sheet resilience and pursuing growth opportunities while monitoring conditions.