Khong Guan (K03) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 3% to $71.916m, while profit after tax turned to a $56k loss from $651k profit; attributable loss was $286k.

• Malaysian competition and sluggish food-manufacturer demand offset stronger export sales of cereals and cooking oils as freight conditions normalized.

Financial highlights

• Revenue was $71.916m versus $69.686m in FY2022; profit before tax fell to $486k from $1.421m.

• Net loss was $56k versus net profit of $651k; loss attributable to equity holders was $286k versus profit of $371k.

• Basic and diluted EPS was -1.11 cents versus 1.44 cents.

Outlook and guidance

• Cautious on Malaysian conditions; priorities are cost management, higher efficiency and streamlining operations.

• UMF expects to improve performance through its cereals business and exploration of new markets; SGP will continue developing plant-based protein alternatives regionally.