GP Industries (G20) H1 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 1.1% YoY to S$570.5m; operating earnings improved, with profit before finance costs and share of associates up 53.9% to S$37.8m.

• Profit attributable to equity holders increased 62.9% to S$14.5m; basic EPS rose 62.5% to 2.99 Singapore cents.

Financial highlights

• Gross profit rose 9.8% to S$169.4m; gross margin expanded to 29.7% from 27.4% YoY.

• Adjusted PBFCRA, excluding other operating income and expenses, increased 85.7% to S$24.7m from S$13.3m.

• Profit after tax increased 60.9% to S$22.3m; profit before tax rose 47.5% to S$29.0m.

• Net operating cash flow was S$11.6m versus S$4.7m; cash and cash equivalents ended at S$125.5m, down from S$187.1m at 31 March 2024.

• Finance costs declined 8.6% to S$15.2m, mainly due to bank-loan repayments; distribution costs rose 2.9% to S$71.8m, largely on higher shipping costs.

Outlook and guidance

• Battery-product demand is expected to remain stable as major overseas customers’ demand stabilizes following inventory optimization.

• KEF demand is expected to gradually strengthen, supported by the London experience center, product launches and distribution-channel expansion.

• High interest rates are expected to persist through FY ending 31 March 2025, keeping finance costs significant; alternative financing may be explored to reduce bank borrowings and costs.

• Planned actions include accelerating non-core asset divestments, earning rent before sale completion, continued cost reductions and corporate streamlining; no significant disposal-related operating items are expected in H2.