GKE Corporation’s earnings for the FY2022 ended May 31 plunged 59.2% y-o-y to $4.7 million from $11.5 million previously.
Earnings per share (EPS) fell by 59.1% y-o-y to 0.61 cents for the FY2022.
Revenue for the full year fell 11.9% y-o-y to $104.8 million.
Gross profit fell 8.4% y-o-y to $26.3 million although gross profit margin (GPM) increased by 1 percentage points to 25.1%.
Profit before tax fell 50.3% y-o-y to $8.52 million.
According to the company, the significant decrease was due to the reduction in government support schemes and lower contribution from the group’s infrastructural materials and services segment amid China’s zero-Covid policy and the adverse segment in the real estate sector.
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As at May 31, cash and cash equivalents stood at $27.1 million.
The company has proposed a final dividend of 0.2 cents per share for the FY2022, half of the 0.4 cents proposed in the FY2021.
“We are satisfied by our financial performance in FY2022 as the group has continued to overcome evolving changes in our business environment in Singapore and China amid the prolonged Covid-19 pandemic and geopolitical uncertainties,” says Neo Cheow Hui, GKE’s CEO and executive director.”
“Our efforts in advancing our conventional warehousing and logistics operations towards higher value-adding solutions and services for our customers took time, and reinforced our fundamentals as we broadened into higher margin solutions and services, such as handling and storage of dangerous goods (“DG”) and pharmaceutical products,” Neo adds.
He continues: “The unexpected turmoil in China’s real estate sector and the stringent precautionary measures in compliance with the Chinese government’s ‘zero-Covid’ policy, had adversely impacted the Chinese economy, as well as the financial performance of our infrastructural materials and services segment in China.”
That said, the company believes the urbanisation trend in China is “intact”.
“Meanwhile, we are mindful of the rising inflationary pressure on our operations as we continue to strive to minimise risk and adverse impact,” says Neo.
“As countries move progressively from the pandemic phase to an endemic phase, we are optimistic about our longer-term prospects in both our warehousing and logistics segment in Singapore, and infrastructural materials and services segment in China. We are motivated and committed to emerge stronger with our employees, customers, and business partners in a sustainable manner.”
Shares in GKE Corp closed 0.1 cent lower or 0.96% down at 10.3 cents on July 27.
