PSC Corporation has reported earnings of $12.7 million for the 1HFY2022 ended June, 41.9% higher than earnings of $8.9 million.
The earnings surge was attributable to the higher other income, which rose by more than three folds to $4.7 million due to a one-time gain on de-consolidation of subsidiaries, which amounted to $3.5 million. The surge was partly offset by a reduction of amortization of deferred income in the 1HFY2022.
Without the one-time gain, the group’s earnings would have increased by 2.7% y-o-y.
Revenue for the 1HFY2022 increased by 9.1% y-o-y to $281.4 million due to higher sales volume and selling prices from the group’s consumer business in Singapore and Malaysia and partly offset by the lower revenue from its 64%-owned subsidiary Tat Seng Group. In the six-month period, Tat Seng reported a reduction in total sales volume due to the tightened Covid-19 curbs in China.
Gross profit increased by 3.5% y-o-y to $59.5 million in line with the higher revenue. Gross profit margin (GPM), however, fell by 1.2 percentage points to 21.1% in the 1HFY2022.
Earnings per share (EPS) for the period stood at 2.29 cents, while PSC’s net asset value (NAV) per share stood at 56.62 cents per share.
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An interim dividend of 0.25 cent per share has been proposed, which will be paid out on Aug 31.
Cash and cash equivalents stood at $164.6 million as at June 30.
Executive chairman Dr Sam Goi says, “We are pleased that our consumer business has posted a 29% surge in sales in Singapore and Malaysia, thanks to the lifting of Covid-19 measure in the region, the reopening of travel between the two countries and the addition of CKH Food Trading into our group, which boosted our performance.”
“Our packaging business was affected by supply chain disruptions and the new wave of infections in China,” he adds.
“Moving into the second half of FY2022, we envisage that business conditions will remain challenging even as the Russia-Ukraine conflict and other external factors continue to drive inflationary pressures on all fronts which will affect our margin,” says CEO Henry Chu.
“Notwithstanding, the group is on a robust footing with a positive net cash position and a healthy balance sheet. Going forward, we will leverage on our strengths to grow the business and exercise caution when exploring sustainable growth opportunities.”
Shares in PSC Corporation closed 0.5 cent higher or 1.35% up at 37.5 cents on Aug 10.
