New Toyo International Holdings (N08) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 6.9% YoY to SGD 141.45m, while profit attributable to owners increased 8.4% to SGD 5.87m.

• Higher Trading revenue and lower distribution expenses supported profit growth; gross profit and gross margin declined amid a lower-margin sales mix.

Financial highlights

• Operating profit increased 12.0% YoY to SGD 8.43m; profit before tax rose 14.9% to SGD 8.00m and profit for the period rose 9.6% to SGD 6.15m.

• Other income fell to SGD 2.80m from SGD 3.97m, mainly due to lower freight income; distribution expenses decreased to SGD 2.60m, mainly on lower freight costs.

• Operating cash flow was SGD 16.61m versus SGD 5.42m in H1 2022, mainly reflecting working-capital changes; cash and cash equivalents ended at SGD 25.06m.

• Total assets were SGD 253.20m at 30 June 2023, up from SGD 246.09m at year-end; liabilities rose to SGD 67.57m from SGD 63.41m.

Outlook and guidance

• With global economic uncertainty, the outlook is expected to remain challenging; strategy reviews may include exploring business opportunities and optimizing operations for cost savings.