Noel Gifts International (543) H1 2024 earnings summary

Executive summary

• 1H FY2024 revenue from continuing operations fell 16.4% YoY to $6.152m; gross profit declined 14.5% to $3.109m and the period recorded a $1.189m net loss.

• The gifts business faced weaker sales, while the proposed collective sale of the property portfolio was expected to complete within FY2024; overall results were expected to be profitable, barring unforeseen circumstances.

Financial highlights

• Continuing-operations revenue was $6.152m versus $7.355m YoY; cost of sales fell 18.2% to $3.043m.

• Gross profit was $3.109m, down 14.5%; distribution costs decreased 2.1% to $1.418m, while administrative expenses rose 1.4% to $3.148m.

• Loss before tax from continuing operations was $1.377m versus $872k; continuing-operations loss after tax was $1.357m versus $878k.

• Net loss attributable to owners was $1.189m versus $646k; discontinued operations contributed $168k profit after tax versus $232k.

• Other operating income was $218k versus $224k; finance costs increased to $21k from $11k, reflecting higher lease interest rates.

Outlook and guidance

• FY2024 was expected to remain challenging for the gifts division; lower 1H sales and changing consumer demand were expected to weigh on full-year performance.

• Sales efforts to improve gift sales and cost reduction initiatives were to continue.

• Barring unforeseen circumstances, collective-sale completion was expected within FY2024 and the overall result was expected to be profitable.

• Active consideration of property and other investment opportunities continued.