Oceanus Group (579) H2 2023 earnings summary

Executive summary

• FY2023 revenue reached a record S$344.3m, up 47% YoY; EBITDA improved to S$8.8m from a S$2.7m loss, while net loss narrowed to S$2.2m from S$11.7m.

• Diversified food trading, a wider distribution network and ODIN digital services supported growth; year-end net assets were S$61.3m and cash was S$19.0m.

Financial highlights

• Revenue rose 47% YoY to S$344.3m from S$234.5m; gross profit increased 37% to S$25.2m from S$18.4m.

• Other operating income increased 233% to S$5.0m, mainly from trade-services commissions; other operating expenses fell 22% to S$12.9m.

• EBITDA improved to S$8.8m from negative S$2.7m; loss before tax was S$1.1m versus S$10.8m, and net loss was S$2.2m versus S$11.7m.

• Cash balance increased 84% to S$19.0m from S$10.3m; net working capital rose 4% to S$65.8m from S$63.3m.

Outlook and guidance

• ODIN was expected to launch in the wider market in 2024; Oracle ERP implementation was scheduled for Q1 2024, with the first revenue-management internal audit planned for Q2 2024.

• The bonded warehouse licence and expanded digital payment, financing, marketplace and warehouse-management services support plans to grow global distribution and logistics.