International Cement Group (KUO) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 2% YoY to S$263.6m; net profit attributable to shareholders fell to S$0.1m from S$16.1m.

• Underlying net profit, excluding non-cash FX losses and asset impairment, was S$35.5m vs S$28.2m in FY2023.

Financial highlights

• Gross profit increased 2% to S$93.1m; profit before tax fell 62% to S$18.4m, while profit after tax declined 91% to S$2.5m.

• FX losses were S$25.4m vs FX gains of S$0.9m in FY2023; a S$7.6m impairment was recorded on gypsum plasterboard plant operating assets.

• Higher cement sales volumes in Kazakhstan and Afghanistan supported revenue growth; a Kazakhstan distributor contributed S$33.4m, or 13% of revenue, vs S$26.1m, or 10%, in FY2023.

Outlook and guidance

• Korcem is expected to contribute to sales from 2Q2025; outlook for FY2025 is positive as distribution networks expand and regional infrastructure demand rises.

• Gypsum plasterboard growth is expected from new products and direct sales to major construction firms.