Yeo Hiap Seng (Yeo’s) Y03 has reported earnings of $1.2 million for the 2HFY2022 ended Dec 31, 2022, reversing from the loss of $1.7 million in the corresponding period the year before.
For the FY2022, Yeo’s earnings stood at $2.4 million, reversing from the loss of $2.9 million the year before.
2HFY2022 revenue increased by 4.9% y-o-y to $176.8 million mainly due to higher growth from the group’s business in Malaysia. Yeo’s core food and beverage (F&B) revenue grew by 1.5% y-o-y to $152.5 million.
FY2022 revenue grew by 6% y-o-y to $358.1 million with y-o-y growths from the group’s businesses in Malaysia, Cambodia, Indonesia and the US. Core F&B revenue for Yeo’s grew by 4.7% y-o-y to $318.5 million.
2HFY2022 gross profit increased by 11.0% y-o-y to $51.5 million, with gross profit margin (GPM) growing by 1.6 percentage points y-o-y to 29.1%. The stronger GPM was due to the group’s conscious efforts in driving net price increase and product portfolio optimisation, which mitigate the cost pressures from raw materials and utilities during the period.
FY2022 gross profit grew by 7.0% y-o-y to $107.4 million as GPM rose by 0.3 percentage points y-o-y to 30.0%.
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2HFY2022 other income increased by 61.8% y-o-y to $7.8 million while FY2022 other income grew by 52.7% y-o-y to $12.8 million. This is mainly from higher interest, rental and dividend income.
During the group, Yeo’s adjusted its reported accounting errors of $3.9 million. The sum was in relation to the FY2021 and 1HFY2022 misstatements in the consolidated financial statements of a wholly owned subsidiary.
Higher income tax expense was recognised for higher operating profits in certain subsidiaries and certain unutilised tax losses were not recognised as deferred tax credit. Net profit after tax of the group increased by $2.9 million y-o-y to $1.2 million during the year, compared to the loss recorded in 2HFY2021.
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Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 0.2 cents and 0.4 cents respectively.
As at Dec 31, 2022, cash and cash equivalents stood at $215.1 million.
A final dividend of 2 cents per share – payable in cash or scrip – has been proposed for the period, unchanged from the year before.
Looking ahead, the group says operating cost inflation will continue to pose headwinds to its operations.
“Management will focus on driving higher margin products growth and cost reduction to improve business performance, and will continue to review the group’s operational structure to drive operational efficiency and commercial excellence across the entire value chain,” says the group.
The group, on the same day, announced that two of its directors will be retiring from their positions at its upcoming annual general meeting (AGM) on April 28.
William Adamopoulos will be retiring from his roles as the group's non-independent and non-executive director and member of the remuneration committee while PAP member of Parliament (MP), Sitoh Yih Pin will be retiring from his roles as independent and non-executive director, chairman of the nominating committee and member of the remuneration committee. Adamopoulos was first appointed to the roles in July 2020 while Sitoh was appointed in October 2019.
Shares in Yeo’s closed flat at 68.5 cents on Feb 28.
