Challenger Technologies’ second-half net profit down 40% despite higher revenue
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The company said in a bourse filing on Friday that net profit for the six months ended Dec 31, 2022 fell to $5.1 million.
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Raphael Lim
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SINGAPORE - Mainboard-listed Challenger Technologies reported a 40 per cent decline in net profit for the second half, despite higher revenue.
The company said in a bourse filing last Friday that net profit for the six months ended Dec 31, 2022, fell to $5.1 million, down from $8.4 million in the year-ago period.
On a per share basis, earnings fell to 1.26 cents in the second half of financial year 2022, down from 2.38 cents in the second half of FY2021.
A final cash dividend of 1.25 cents per share was proposed, down from the final dividend of 2.8 cents per share in the year-ago period. The dividend is payable on May 18, 2023.
For FY2022 second half, Challenger’s revenue rose 9 per cent to $160.4 million, with information technology products and services revenue contributing to the increase.
Revenue for the full year was also up 3 per cent to $291.4 million. Challenger noted that both retail and corporate sales rose during the year, and this increase came in line with the reopening of borders leading to tourism spending, as well as better spending sentiment among local consumers and small businesses.
However, net profit for the full year was down 44 per cent to $9.9 million.
“The lower profit achieved was largely due to the fair value loss on investment, reduced Covid-19-related government wage supports and higher operating expenses incurred,” Challenger said.
In terms of outlook, Challenger said both local consumer and tourist spending in Singapore is expected to continue rising as the world emerges from Covid-19.
However, it added “the group is cautiously optimistic” as inflationary pressure and the goods and services tax hike could potentially dampen consumer retail expenditure. “The group will continue to focus on its core retail business, as well as ramping up e-commerce engagement by collaborating with e-commerce platforms, and enhancing its overall product range.
“We will also continue to look for business opportunities, drive operational efficiencies and further strengthen our balance sheet.”
As at Dec 31, 2022, net asset value per share stood at 40 cents, unchanged from the previous year.
Challenger shares closed unchanged at 52 cents on Friday, before the earnings announcement. THE BUSINESS TIMES
