The Straits Trading Company has reported earnings of $551.3 million for FY2022, up 135% versus $234.3 million recorded in the preceding year ended Dec 31 2021, thanks to divestment gains of its stake ARA Asset Management.
Revenue in the same period was up 33% to $527.6 million, with higher contributions from its various business segments.
For 2HFY2022, the company booked a fair value loss of $75.4 million on its investment properties portfolio, versus a gain of $133.4 million made in FY2021.
This brings 2HFY2022 losses to $122.5 million, versus earnings of $144.1 million.
In the past year, the company completed the acquisition of a portfolio of office and industrial buildings and several plots of development land in the Gloucester Business Park in the UK.
To further diversify its portfolio, it also acquired a remaining 20% stake in its logistics portfolio in Australia - part of Straits Trading's wider multi-asset, multi-market strategy.
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Straits Trading owns stakes in the hospitality business, such as its 30% share of Far East Hospitality Holdings. During the year, this business segment returned to profitability with an ebitda of $0.8 million.
Now, given the global uncertainties, Straits Trading prefers to remain cautious and will continue to adopt prudent financial management and explore opportunities to drive long-term sustainable growth.
Elsewhere, its resources segment, mainly via its separately listed, 52%-owned Malaysia Smelting Corp, has reported an ebitda of $54.6 million in FY2022, down from $59.5 million, due to higher energy costs which made smelting more expensive.
MSC, says Straits Trading, will continue to focus on improving operational efficiencies in its smelting and mining segments.
“Our FY2022 results demonstrate the resilience of our conglomerate business model with diversified operations and interests across several markets,” says executive chairman Chew Gek Khim.
“As such, we were able to grow from strength to strength, and deliver superior value to our stakeholders.
“We aim to build on this momentum by continuing our efforts under the Straits 5.0 Transformation,” she adds, referring 137-year-old company's latest growth stage.
Straits Trading warns that the current FY2023 will remain “challenging” because of higher energy prices, interest rates, and labour cost.
“The group will continue to stay disciplined and prudent in its investment approach as it navigates forward,” the company says.
Straits Trading plans to pay a dividend of 8 cents – which is on top of the distribution in specie equivalent to 50 cents already made earlier in FY2022.
Straits Trading shares closed Feb 28 at $2.28, up 0.88%.
