Straco Corporation S85 has reported earnings of $16.3 million for the 3QFY2023 ended Sept 30 with China’s post-Covid reopening providing a significant boost.
In comparison, the company reported earnings of just $175,000 for 3QFY2022.
Revenue for 3QFY2023 tripled y-o-y to $35.5 million, compared to $11.7 million the same period last year.
For the quarter ended Sept 30, Straco’s China businesses reported significant improvements in revenue and profitability compared to the same period last year, with the return of crowds during the summer holidays in China a major contributing factor.
The company notes that there were no business disruptions during the quarter and that China’s transition to a post-Covid era since the last quarter of 2022 has been positive.
Meanwhile, Straco’s Singapore Flyer also reported significantly higher revenue in 3QFY2023 compared to the same period last year as international visitors returned to Singapore after all Covid-related border restrictions were lifted by the government on Feb 13.
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Straco’s net cash generated from operating activities amounted to $25.29 million in 3QFY2023, compared to $4.3 million in 3QFY2022
Year-to-date, the company’s revenue for the first three quarters of 2023 increased by 228.7% y-o-y to $67.54 million. Its earnings for the 9MFY2022 ended Sept 30 came to $22.7 million, compared to a net loss of $8.3 million for the first three quarters of FY2022, which experienced a much tougher operating environment.
As at Sept 30, Straco’s net cash holdings stood at $165.9 million.
Shares in Straco closed 1.5 cents or 3.53% down at 41 cents on Nov 24.
