Oceanus Group (579) H1 2024 earnings summary

Executive summary

• H1 2024 revenue reached a record SGD127.6m, up 5% YoY, driven mainly by distribution sales of fast-moving consumer goods, beverages and food commodities.

• Gross profit was SGD9.4m; net loss widened to SGD1.2m from SGD0.6m, while EBITDA declined to SGD3.9m from SGD5.7m.

• At 30 June 2024, net assets were SGD56.8m and cash was SGD6.9m; the period recorded a net cash decrease of SGD11.7m.

Financial highlights

• Revenue was SGD127.608m versus SGD121.800m in H1 2023; gross profit was SGD9.359m versus SGD9.366m.

• Other operating income fell to SGD3.2m from SGD4.5m, largely reflecting lower FX gains of SGD0.9m versus SGD2.2m.

• Other operating expenses rose to SGD8.7m from SGD8.2m, mainly due to additional ODIN development activity.

• Finance costs declined to SGD3.1m from SGD3.8m; depreciation expense was SGD1.6m, including SGD1.2m for China farming assets.

• Total assets were SGD172.1m versus SGD184.6m at 31 December 2023; total liabilities fell to SGD115.3m from SGD123.3m.

Outlook and guidance

• Continued investment in ODIN and related technologies is intended to strengthen global trading and distribution capabilities; ODIN had facilitated gross transaction value nearing SGD200m since launch.

• Development and innovation costs for ODIN exceeded SGD2m; further technology investment and key projects are expected to support increased volumes.

• A RMB200m investment intention agreement supports cross-border trade in food, wine and consumer goods; SEASON was appointed exclusive distributor of Penfolds Champagne in China.