NVC International (2222) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2024 was US$118.5 million, down 0.4% year-over-year, with international sales up 1.0% and PRC sales down 24.1%.

• Gross profit increased 13.5% to US$37.1 million, with gross margin rising from 27.5% to 31.3% due to normalized shipping costs and cost control.

• Net profit attributable to owners was US$7.66 million, up from US$1.03 million in the prior year period.

• The Group maintained strong liquidity, with net current assets of US$160.5 million and a current ratio of 3.27.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: US$118.5 million (down 0.4% year-over-year).

• Gross profit: US$37.1 million (up 13.5% year-over-year); gross margin: 31.3%.

• Profit before tax: US$10.3 million (up from US$2.3 million year-over-year).

• Net profit attributable to owners: US$7.66 million (up from US$1.03 million year-over-year); EPS: 1.51 US cents (up from 0.24 US cents).

• Cash and cash equivalents: US$118.8 million at period end.

Outlook and guidance

• The Group expects continued growth in international lighting, with intensified competition in North America and Japan.

• Focus on new product launches, R&D, cost control, and supply chain localization, especially in Vietnam.

• Anticipates improved sales in the UK, Japan, Southeast Asia, and growth in Middle East infrastructure projects in the second half of 2024.

• Plans to fully utilize remaining net proceeds from share issuance within six months for overseas expansion and working capital.

• Further brand building and strategic investments to enhance competitiveness.