Hotel Royal (H12) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 8.6% YoY to S$35.328m, while profit after tax fell 19.3% to S$2.794m, mainly reflecting the absence of prior-year FX gains.

• Excluding FX, adjusted profit after tax increased 53.5% YoY to S$3.006m, reflecting stronger underlying operating performance.

• Second-half expectations are for moderate growth, with efficiency, revenue diversification and marketing identified as priorities amid uneven tourism and macro conditions.

Financial highlights

• Revenue was S$35.328m, up 8.6% YoY; gross profit was S$18.730m, up 8.6%, as cost of sales rose 8.5% to S$16.598m.

• Profit before tax declined 17.9% to S$3.960m; profit after tax fell 19.3% to S$2.794m.

• Other income fell 77.4% to S$447k, mainly due to the absence of prior-period FX gains; administrative expenses increased 12.3% to S$11.148m.

• Adjusted profit after tax, excluding FX adjustment loss/gain, rose 53.5% YoY to S$3.006m from S$1.958m.

• Operating cash flow was S$4.711m versus S$2.348m; investing cash outflow was S$355k versus S$4.788m.

Outlook and guidance

• Moderate growth is anticipated in H2 2025, tempered by slower GDP growth, inflation, currency fluctuations and fragile long-haul market recovery.

• Priorities include monitoring macroeconomic and regional tourism trends, improving operating efficiency, diversifying revenue and strategic marketing.