GKE Corp's warehousing and logistics business did better but weakness in its building materials business in China dragged overall earnings for FY2023 down by 16.9% y-o-y to $3.91 million. For this full year ended May 31, the company recorded a revenue of $108.9 million, up 3.9% y-o-y. It plans to pay a final dividend of 0.2 cents per share, unchanged from the previous year.
GKE's warehousing and logistics business, largely Singapore-based, reported revenue of $86.3 million for FY2023, up 15.6% over FY2022, thanks partly to contribution from newly acquired Fair Chem Industries.
On the other hand, its China-based business of supplying ready-mixed concrete suffered a 26.3% drop in revenue to $22.1 million, amid a wider slowing business climate.
GKE operates a third business segment, indoor farming, which generated revenue of $612,000, versus $228,000 recorded in the preceding FY2022.
“We are heartened to have emerged from the pandemic with a stronger foundation, where we are geared towards supporting our customers with higher value-adding solutions and services in our core integrated warehousing and logistics businesses," says executive director and CEO Neo Cheow Hui.
He says the company's bid to expand into the provision of handling and storage of dangerous goods such as pharmaceuticals and chemicals has paid off, bringing in better margins.
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"Our continuous pursuit of advancing our competencies in handling and storage of cargoes in niche and specialised industries has won us a favourable market position and kept our warehouses at high occupancy rates," says Neo.
Meanwhile, he is optimistic that the challenges facing the company's China-based business "will come to pass".
"We remain mindful of our expansion plans and management of resources given the current economic conditions and inflationary pressure," says Neo.
GKE shares closed July 26 at 7.2 cents, unchanged for the day and down 20% year to date.
