Noel Gifts International (543) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 10.3% YoY to $18.5m, reflecting lower gift sales partly offset by stronger rental income; net profit was $0.2m vs $2.9m in FY2022.

• Cost pressures and weaker demand weighed on trading, while management is pursuing new sales and marketing strategies, cost control and operating efficiency.

Financial highlights

• Revenue was $18.523m vs $20.652m; gross profit was $8.915m vs $10.062m.

• Profit before tax was $195k vs $2.870m; net profit attributable to shareholders was $225k vs $2.889m.

• Other operating income was $753k vs $2.965m; FY2023 included grants, investment and interest income, and a gain on residential property disposal.

• Administrative expenses declined $0.9m to $6.5m, mainly on lower staff bonuses; FY2022 also included a $0.2m reversal of trade receivables loss allowance.

Outlook and guidance

• Management plans new marketing and sales strategies to lift sales, while actively managing costs and improving efficiency.

• Priorities include streamlining processes, strengthening existing revenue streams, developing new opportunities and building a future talent pipeline.

• A special dividend of $0.006 per ordinary share was proposed, subject to shareholder approval.