HRnetGroup (CHZ) H2 2024 earnings summary

Executive summary

• FY24 revenue was S$567.0m, down 2.0% YoY; NPAT was S$46.3m, down 29.9%, as gross profit and other income declined.

• Cash and T-bills totaled S$311.4m with zero borrowings; free cash flow was S$49.4m.

• Shareholder returns included a 4.0-cent dividend per share, 85% payout and S$3.3m in share buybacks.

Financial highlights

• Revenue S$567.0m vs S$578.5m (-2.0%); gross profit S$122.2m vs S$139.0m (-12.1%).

• NPAT S$46.3m vs S$66.1m (-29.9%); PATMI S$44.5m vs S$63.6m (-30.0%).

• EBITDA was S$56.4m vs S$79.5m (-29.0%); EPS was 4.53 cents vs 6.35 cents (-28.6%).

• Other income fell 45.0% to S$15.4m, including S$4.3m net fair-value loss on financial assets vs S$1.4m gain in 2023.

• SG&A declined 8.4% to S$81.6m; employee benefit expenses fell 10.0% to S$63.9m, mainly from lower incentives and bonuses.

Outlook and guidance

• 2025 priorities: move Professional Recruitment up the value chain into senior Executive Search and pursue larger Flexible Staffing projects, especially Government work.

• Plans include a Vietnam Executive Search business and M&A; management cited annualized cost savings of S$1.0m from de-layering and S$1.6m of office rental savings over the lease period.

• PWCS government grants of S$3.1m had been received in 1H2025; additional 2024 wage-increase co-funding was expected in 2025, barring delay.