GP Industries (G20) H2 2024 earnings summary

Executive summary

• FY2024 revenue declined 3.6% YoY to S$1,108.1m; gross margin rose to 28.5% from 26.6%, and operating earnings before finance costs and associate results improved to S$54.9m from S$35.1m.

• Attributable net loss was S$58.7m, mainly reflecting a non-cash, extraordinary S$76.4m share of loss from XIC, including S$71.9m impairment; excluding XIC results, adjusted attributable profit was S$17.6m.

Financial highlights

• Revenue was S$1,108.1m versus S$1,150.0m; gross profit rose to S$316.2m from S$306.0m, while operating profit before finance costs and associate results reached S$54.9m from S$35.1m.

• Net loss was S$47.0m versus net profit of S$27.4m; loss attributable to equity holders was S$58.7m versus profit of S$22.0m.

• Adjusted attributable profit, excluding XIC results in both years, was S$17.6m versus S$18.4m; adjusted EPS was 3.64 Singapore cents versus 3.81 cents.

• Operating cash flow was S$44.6m versus S$76.8m; cash and deposits ended at S$187.1m versus S$209.5m.

Outlook and guidance

• Demand may remain weak as inflation and high interest rates weigh on audio spending and overseas customers continue battery inventory optimization; component shortages may constrain delivery and working-capital efficiency.

• KEF consumer speaker demand is expected to strengthen gradually; Celestion driver and professional audio manufacturing demand may benefit from public performances and easing trade inventory adjustments.

• Following the January 2024 distribution in specie, the Battery Business will focus on GP-branded and private-label consumer batteries; lithium coin and specialty batteries are growth areas.

• Continued USD strength against the Chinese Renminbi could ease cost pressure and provide pricing and production flexibility; high rates may prompt alternative financing for expansion.