New Toyo International Holdings (N08) H1 2024 earnings summary

Executive summary

• 1H 2024 revenue rose 14.4% YoY to SGD161.77m, but profit attributable to owners fell 16.3% to SGD4.91m as gross margin narrowed and costs increased.

• Profit before tax was SGD6.86m versus SGD8.00m; profit for the period was SGD5.23m versus SGD6.15m.

Financial highlights

• Gross profit increased 5.0% to SGD17.98m; gross margin declined to 11.1% from 12.1%, mainly due to a larger share of lower-margin Trading sales.

• Other income fell to SGD1.96m from SGD2.80m, while distribution expenses rose to SGD2.93m; net FX loss was SGD0.21m versus a gain of SGD0.33m.

• Operating profit declined 12.7% to SGD7.35m; net finance costs increased to SGD0.27m from SGD0.16m.

• Basic and diluted EPS were both 1.12 cents, down from 1.34 cents in 1H 2023.

Outlook and guidance

• No prior earnings forecast was issued; management plans to adapt to changing conditions, improve production efficiency, strengthen core operations and pursue existing and new markets.

• An interim cash dividend of 0.90 cents per ordinary share was reported; payment and books-closure dates were to be advised.