Koda (BJZ) H1 2025 earnings summary

Executive summary

• 1H2025 revenue rose 39.0% YoY to US$27.74m; net profit attributable to owners was US$416k, reversing a US$2.34m loss in 1H2024.

• Higher export sales, improved factory efficiency and greater utilisation lifted gross margin; net operating cash flow increased to US$2.28m from US$259k.

Financial highlights

• Gross profit increased 61.8% YoY to US$8.25m; gross margin reached 29.7%, up 4.1 percentage points, reflecting improved efficiency and lower unit production costs.

• Profit before tax was US$645k versus a US$2.21m loss; net profit was US$418k versus a US$2.36m loss. Basic and diluted EPS were both US$0.50, versus a US$2.82 loss per share.

• Selling and distribution costs rose 33.1% to US$3.79m with sales commissions, freight and trade fair costs; administrative expenses fell 5.8% to US$3.90m.

• Other expenses fell to US$51k from US$562k; excluding prior-year misappropriation and Vietnam fire-related losses, the comparison benefited from those non-recurring 1H2024 charges.

Outlook and guidance

• Improving export revenues and factory efficiency were described as a foundation for better 2H performance, barring unforeseen circumstances.

• Export order enquiries from the US and Europe remained encouraging, but the outlook was cautious amid uncertainty over US tariffs and their impact on prices and sourcing costs.

• Weak Chinese consumer sentiment and unresolved structural housing issues were expected to continue weighing on retail and distribution activity.