SINGAPORE (Feb 28): Yeo Hiap Seng reported FY16 earnings of $29 million, down 21.4% from FY15 a year ago.
This was mainly due to the absence of a write-back of construction costs and income tax of $2.86 million in the property division and a higher dividend income from available-for-sale financial assets of $1.17 million, both of which were included in FY15.
Excluding the impact of these items, the group’s net profit decreased by $3.84 million.
Group revenue for FY16 fell to $410 million from $443.5 million a year ago, dragged down by a 7.3% decline in revenue contributions from the food and beverage (F&B) segment on lower sales.
There were no property development or selling activities in FY16, which the group says is an indication of its dormant property development segment.
For the 4Q16 ended Dec, Yeo Hiap Seng recorded earnings of $10.34 million, down by about $4 million compared to the $14.2 million declared in 4Q15.
Overall earnings for the quarter also included a $5.66 million increase in net fair value gains on investment properties, net of tax.
As at Dec 31, cash and cash equivalents fell to $92.22 million from $112.12 million a year ago, mainly due to dividends paid to equity holders of the company, purchases of and deposits paid for property, plant and equipment.
Trade and other receivables grew to $79.71 million from $72.07 million as at end-2015 due to higher sales in the preceding months before the balance sheet dates and higher deposits paid for property, plant and equipment.
Yeo Hiap Seng says that it expects F&B margins to come under pressure over the next 12 months, due to “soft economic conditions and weak outlook for [its] key markets; competitive selling prices; and uncertainty in raw material prices”.
Looking ahead, group also expects fluctuations in regional currencies to impact its results.
A first and final dividend of 2 cents per share has been proposed for the year in review.
Shares of Yeo Hiap Seng closed 1 cent lower at $1.38 on Tuesday.
