Kingsmen Creatives (5MZ) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 17.5% YoY to S$143.8m; gross profit increased 25.5% to S$32.8m, and profit attributable to equity holders was S$0.6m versus a S$1.5m loss.

• Physical trade shows, events and brand activations returned, alongside continued interiors and design activity.

Financial highlights

• Revenue increased from S$122.4m to S$143.8m, up 17.5% YoY; cost of sales rose 15.3% to S$111.0m.

• Gross profit rose from S$26.1m to S$32.8m, up 25.5%; profit before tax was S$0.8m versus a S$1.9m loss.

• Net profit after tax was S$0.2m versus a S$1.9m loss; S$0.6m was attributable to equity holders and S$0.4m was the loss attributable to non-controlling interests.

• Employee benefits expense rose 9.0% to S$26.1m and other expenses rose 29.8% to S$5.6m, reflecting higher headcount, activity, inflation and FX loss.

Segment performance

• Exhibitions, Thematic & Attractions revenue rose 29.2% to S$65.4m, driven by returning physical trade shows, conferences and events; segment profit was S$0.2m.

• Retail & Corporate Interiors revenue increased 2.6% to S$66.1m as clients refreshed or launched concepts; segment profit was S$0.3m.

• Research & Design revenue grew 27.7% to S$7.4m on new experiential design opportunities; segment profit was S$0.4m.

• Experiential Marketing revenue rose 202.1% to S$4.9m with resumed brand activations and conferences; segment profit was S$0.1m.