The Hour Glass (AGS) H1 2025 earnings summary

Executive summary

• Revenue for the half year ended 30 September 2024 decreased by 3% to $540.3 million compared to the same period last year, with gross margin slightly lower at 30.7% versus 30.9%.

• Profit attributable to owners fell 20% year-over-year to $61.4 million, and basic EPS declined 19% to 9.46 cents.

• Operating expenses rose due to higher advertising, promotional activities, depreciation, and a loss on disposal of property, plant and equipment.

Financial highlights

• Revenue: $540.3 million, down 3% year-over-year.

• Profit before tax: $78.6 million, down 20% year-over-year.

• Net profit: $61.6 million, down 21% year-over-year.

• Gross margin: 30.7% (vs 30.9% last year).

• Interim dividend of 2.00 cents per share declared, totaling $13.0 million.

Outlook and guidance

• The specialty watch and luxury sector faces macroeconomic and geopolitical headwinds, dampening consumer sentiment.

• Despite challenges, profitability is expected for the full financial year.