Teckwah Industrial Corp has recorded earnings of $5.3 million in the six months ended June 30, up 16.2% y-o-y, from $4.5 million.
This came on the back of higher operating profit before tax due to an increase in other income received from government support schemes.
Revenue, however, fell 2.5% y-o-y to $76.7 million from $78.7 million, as its packaging printing-related, as well as logistics and services businesses registered lower revenue contributions.
Teckwah says both businesses saw a drop in demand from existing local and international customers as a result of the Covid-19 pandemic.
Nevertheless, its new lifestyle business, following the acquisition of Profoto Digital Services (PDS) in April last year, recorded higher revenue contribution, as it recorded its first full six months revenue in FY20, compared to just two months of revenue in FY19.
PDS is in the business of providing digital graphic prints, event set-ups, window display and project management services. Its customers are mainly in the fashion and beauty industry, as well as in shopping malls.
As at end-June, cash and cash equivalents stood at $50.6 million.
During the period, the board has declared an interim dividend of 0.5 cent per share, unchaged from the previous year.
See: Teckwah Industrial responds to Quarz’s open letter, defends decision to maintain current dividend payout
Looking ahead, Teckwah says it will closely monitor the development of the Covid-19 and global operating conditions.
“We will continue to take steps to manage costs to remain competitive, while keeping a vigilant lookout for opportunities to further widen revenue sources in other markets in this challenging and uncertain time,” it says.
Shares of Teckwah closed flat at 55.5 cents on Aug 12.
