LHT Holdings (BEI) H1 2024 earnings summary

Executive summary

• HY2024 revenue fell 16.8% YoY to S$13.57m and net profit fell 42.6% to S$1.48m, amid lower pallet and woodchip demand and higher administrative and finance costs.

• Operating cash flow was S$2.51m; cash and fixed deposits totaled S$35.01m at 30 June 2024, after S$9.58m of dividends paid.

Financial highlights

• Gross profit decreased 16.0% YoY to S$5.23m; gross margin edged up to 38.5% from 38.2%.

• Profit before tax declined 44.8% to S$1.79m; income tax expense was S$0.30m versus S$0.65m, and net profit was S$1.48m versus S$2.58m.

• Total comprehensive income was S$1.53m, down 23.0% YoY; basic and diluted EPS decreased to 2.79 cents from 4.85 cents.

• Revenue declined 16.8% to S$13.57m; cost of sales fell 17.3% to S$8.34m.

Outlook and guidance

• No interim dividend was recommended; the dividend position will be reviewed at FY-end.

• Management plans to remain cautious, maintain cost management, intensify marketing, and further streamline operations, production processes, and production bases.