Khong Guan (K03) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 2% to $70.16m; pre-tax loss was $0.77m versus profit of $0.49m in FY2023, and after-tax loss widened to $1.20m from $0.06m.

• Weakened Malaysian demand and price competition pressured flour and starch sales; associate losses and foreign-exchange effects also weighed on results.

Financial highlights

• Revenue was $70.16m versus $71.92m; purchases of inventories were $64.55m versus $64.30m, while other income rose to $1.04m from $0.87m.

• Attributable loss was $1.35m versus $0.29m; basic and diluted loss per share was 5.25 cents versus 1.11 cents.

• Total comprehensive loss narrowed to $1.56m from $2.16m, as foreign-currency translation losses declined to $0.34m from $2.10m.

• Operating cash flow was an outflow of $0.82m versus an inflow of $0.49m; cash and cash equivalents ended at $4.25m versus $5.52m.

Outlook and guidance

• A recovering Malaysian Ringgit may reduce import costs and support margins; early consumer-confidence recovery may help FMCG sales.

• Commodity-price volatility and geopolitical uncertainty, including Ukraine and the Middle East, may affect input costs, export demand and profitability; risk management remains a priority.