GP INDUSTRIES : G20 0% sunk into the red with a net loss of S$67.6 million for its second half ended Mar 30, compared with a net profit of S$2.2 million in the previous corresponding period.
Revenue slipped 1.9 per cent to S$543.9 million, from S$554.5 million a year earlier.
In FY24, the company reported a fall in revenue for its batteries business compared to FY23, with sales declines largely in Europe and Asia, it said in a bourse filing on Thursday (May 30).
Loss per share stood at 13.98 Singapore cents for the half year, down from earnings per share of 0.47 cent the previous year.
A final dividend of one Singapore cent per share was recommended for the year, down from 1.5 cents the year before, for shareholders’ approval at the upcoming annual general meeting. The date payable will be announced later.
For the full year, the company reported a net loss of S$58.7 million, compared with a net profit of S$22 million a year earlier.
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Full-year revenue fell 3.6 per cent to S$1.1 billion, from S$1.2 billion in the year-ago period.
Earlier in May, the company guided for a net loss of between S$58 million and S$68 million for the year due to impairment losses for XIC Innovation, one of its industrial investments.
Then, GP said XIC Innovation and some of its subsidiaries had received a winding-up petition, but they maintained and continued their business operations with the support of major customers and suppliers.
The company noted that the loss was non-cash in nature, which would not have a substantial adverse impact on GP’s current and future operating cash flow and future operating earnings.
Looking ahead, GP expects the global economy to remain soft with high inflation and high interest rates, which would affect consumer spending on electronic and acoustics products.
Demand for the group’s batteries products may be affected when major overseas customers continue to optimise their inventory level and reduce their inventories, it added.
High interest rates are also pushing up finance costs, and the group may explore funding some of its future expansions by other sources of financing to reduce costs.
While disruption to global shipping services has lessened, there will likely be continued shortages of certain electronics components.
But if the US dollar continues to strengthen against the Chinese yuan, it may reduce cost pressures and provide more flexibility to price products and optimise its production capacity, the company said.
Shares of GP Industries closed flat at S$0.525 on Thursday, before the results were announced.
