PSC Corporation (DM0) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 2.1% YoY to $243.286m; gross margin improved to 23.8% from 22.1%, and profit for the period increased 14.7% to $15.338m.

• Net attributable profit rose 14.0% to $11.151m, supported largely by Packaging; stronger Singapore Consumer and China Packaging sales and the KGGCT acquisition contributed to growth.

Financial highlights

• Revenue was $243.286m, up 2.1% YoY; gross profit increased 9.9% to $57.934m.

• Operating activities profit rose 18.0% to $16.821m; profit before tax increased 17.1% to $19.271m.

• Profit for the period was $15.338m, up 14.7%; profit attributable to owners was $11.151m, up 14.0%.

• Basic and diluted EPS increased to 2.04 cents from 1.78 cents; net profit margin rose to 4.6% from 4.1%.

• Operating cash flow was $7.710m; cash and cash equivalents declined $23.762m to $182.512m at 30 June 2024.

Outlook and guidance

• Consumer Business revenue continued to grow at a slower pace; plans include managing inventory and material prices and controlling costs to limit freight and operating-cost pressures.

• Packaging plans to use operational efficiency, product quality and service to address intense competition and weak demand in China.

• Priorities include strengthening core businesses, leveraging consumer brands for resilience and exploring opportunities for sustainable growth.