F J Benjamin Holdings F10 has posted earnings of $1.7 million for its 1HFY2023 ended December, a reversal from a net loss of $1.3 million in the previous corresponding period.
The turnaround reflected higher sales volume as consumer demand returned in line with the abating of the Covid-19 pandemic.
Turnover rose 26% y-o-y to $45.7 million in 1HFY2023, with sales improving in all three markets — Singapore, Indonesia and Malaysia.
With more consumers returning to shop at brick-and-mortar stores, the company’s online sales saw a decline in contribution, from 6% of total sales in 1HFY2022 to 3% in 1HFY2023. Despite this, e-commerce remains a key pillar of F J Benjamin’s long-term strategy.
Gross profit margin rose to 53% in 1HFY2023 from 47% in 1HFY2022, mirroring the increased footfall at physical stores to satisfy pent up consumer demand after three years of pandemic restrictions on movements. As a result, the company was able to clear more inventory and had less to put on sale at a lower margin.
Group operating expenses rose 21% to $22.3 million in 1HFY2023 due to higher rents, increased staff costs and higher travelling costs. The rise in operating expenses was partly offset by lower depreciation of right-of-use assets resulting from expired leases.
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F J Benjamin’s group CEO Douglas Benjamin says the company is optimistic that the business upturn will be sustained in the near term, supported by the return of Chinese tourists to Southeast Asia. “We look forward to capitalising on this momentum in the coming months even as we keep a wary eye on a possible recession in the west spilling over to Asia.”
Shares in F J Benjamin closed at an unchanged 2.7 cents on Feb 9.
