SINGAPORE (Aug 29): Noel Gifts, the flowers and gifts company, posted a 10.2% drop in FY17 earnings to $1.38 million from $1.52 million in FY16.
Group revenue came in 31.8% lower at $24.2 million in FY17 compared to $35.5 million in FY16 due to the completion of SG50 projects and the decline in demand for gifts amid the uncertain economic conditions.
The lower group revenue was accompanied by a decrease of 22.6% in gross profit to $12.1 million in FY17 from $15.7 million FY16.
FY17 saw overall higher gross profit margin compared to a year ago due to lower margins inherent in the sales related to the SG50 projects.
Other operating income of $0.5 million in FY17 comprised mostly interest income and government grants.
Due to lower manpower costs and staff benefits, total operating expenses for FY17 decreased by 13.8% to $11.2 million.
As at June 30, the group’s cash and cash equivalents stood at $13.3 million.
The group is declaring a first and final cash dividend of 0.3 cent and a special cash dividend of 0.7 cent.
With the uncertain global economic outlook, Noel Gifts expects the operating environment to be challenging, but anticipates a positive contribution from the People's Association contract which was announced on March 31.
Shares in Noel Gifts closed at 22 cents on Tuesday.
