THAKRAL CORPORATION LTD Financial Statements and Related Announcement::Half Yearly Results
Issuer & Securities
Issuer/ Manager
THAKRALFINANCIALCORPORATIONSTATEMENTS ANDLTD RELATED ANNOUNCEMENT::HALF YEARLY RESULTS
Securities
THAKRAL CORPORATION LTD - SG1AJ2000005 - AWI
Stapled Security
No
Announcement Details
Announcement Title
Financial Statements and Related Announcement
Date &Time of Broadcast
10-Aug-2023 19:48:33
Status
New
Announcement Sub Title
Half Yearly Results
Announcement Reference
SG230810OTHR15MZ
Submitted By (Co./ Ind. Name)
Anil Daryanani
Designation
Chief Financial Offcer
Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)
Please refer to attached Press Release, Results Presentation and Unaudited Results for the half year ended 30 June 2023.
Additional Details
For Financial Period Ended
30/06/2023
Attachments
ThakralCorp_PR_1HFY2023_20230810.pdf
ThakralCorp_1HFY2023_PPT_20230810.pdf
ThakralCorp_Results_1HFY2023_20230810.pdf
Financial Statements and Related Announcement::Half Yearly Results
Total size =1029K MB
THAKRAL CORPORATION LTD
(Incorporated in the Republic of Singapore on 7 October 1993) (Company Registration No. 199306606E)
FOR IMMEDIATE RELEASE
Profit attributable to shareholders doubles to S$7.4 million for 1H2023 - growth across segments and geographies
- Investment business more than doubled its segmental profit to S$11.4 million following stronger operating profits at GemLife, a leading over-50s lifestyle resorts developer and operator in Australia
- Lifestyle business recorded a threefold jump in segmental profit to S$9.2 million in 1H2023 million on the back of recovering consumer demand in China and South Asia, as well as new store openings
- In 2H2023, Thakral looks to expand its range of fragrance and drone products; perceives sustainable growth potential for over-50s lifestyle resorts in Australia
Singapore, 10 August 2023 - SGX Mainboard-listed Thakral Corporation Ltd ("Thakral" or the "Group") announced its unaudited financial results for the six months ended 30 June 2023 ("1H2023") today.
Financial Overview
Snapshot of Income Statement | 1H2023 | 1H2022 | Change | |||||||||
(S$'000) | (S$'000) | (%) | ||||||||||
Revenue | 104,196 | 64,375 | +62 | |||||||||
Gross profit | 23,165 | 14,211 | +63 | |||||||||
Profit from operations | 6,597 | 5,950 | +11 | |||||||||
Share of profit (loss) of associates and | 10,052 | (805) | N.M. | |||||||||
joint venture | ||||||||||||
Profit attributable to equity holders | 7,443 | 3,744 | +99 | |||||||||
("attributable profit") | ||||||||||||
N.M. denotes not meaningful |
Thakral reported revenue of S$104.2 million for 1H2023, 62% higher than S$64.4 million attained last year. 94% of the total sales contribution came from the Lifestyle business which mainly constituted the sales of fragrance and lifestyle products to Greater China and DJI drones, digital action cameras, gimbals and their accessories to South Asia.
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Thakral Corporation Ltd
Company Registration No. 199306606E
Press Release - 1H2023 Results
Gross profit grew 63% year-on-year ("yoy") to S$23.2 million for 1H2023 while gross profit margin remained similar at approximately 22% over the same period. Profit from operations increased by approximately 11% yoy to S$6.6 million for 1H2023. Operating margin fell by 2.9 percentage points to 6.3% for 1H2023 due mainly to expanded headcount and higher staff costs, including provisions made for ex-gratia retirement payments.
Segmental Performance of Core Businesses
Snapshot of Key | Investments | Lifestyle | ||||||||||||
Businesses | ||||||||||||||
1H2023 | 1H2022 | Change | 1H2023 | 1H2022 | Change | |||||||||
(S$'000) | (S$'000) | (%) | (S$'000) | (S$'000) | (%) | |||||||||
External revenue | 6,764 | 7,925 | (15) | 97,432 | 56,450 | +73 | ||||||||
Segment operating | 1,442 | 5,810 | (75) | 8,851 | 1,973 | +349 | ||||||||
result | ||||||||||||||
Share of profit | ||||||||||||||
(loss) of | 9,678 | (1,723) | N.M. | 374 | 918 | (59) | ||||||||
associates and | ||||||||||||||
joint venture | ||||||||||||||
Segment result | 11,403 | 4,525 | +152 | 9,212 | 2,891 | +219 | ||||||||
Investments
Segment results for our Investments grew 2.5 times to S$11.4 million for 1H2023 owing to stronger operating profit from our joint venture under GemLife, an over-50s lifestyle resorts operator and developer in Australia and steady flow of profits from the properties in Japan.
In 1H2023, demand for GemLife's homes remained strong with over 600 contracts and deposits currently on hand. Over the past six months, GemLife's portfolio of occupied homes grew by 134 homes to 1,222 homes. The number of occupied homes has increased by 30% on a yoy basis, improving its recurring revenue base going forward.
The Group's portfolio of commercial real estate properties in Japan recorded a steady flow of rental income as markets remained steady with stable average rents over the past half-year.
The majority of the profit contribution stemmed from its GemLife joint venture in Australia and pooled investments in Japan.
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Thakral Corporation Ltd
Company Registration No. 199306606E
Press Release - 1H2023 Results
Lifestyle
Lifestyle business revenue grew 73% yoy to S$97.4 million for 1H2023, primarily attributable to the increased demand for lifestyle and fragrance products in China, 3 new fragrance stores opened in Hong Kong and Macau collectively, as well as new fragrance products launched. Meanwhile, robust demand for DJI's range of products resulted in an increased contribution from South Asia. The share swap of its joint venture, CBT At-Home Beauty Holdings Pte Ltd, generated a S$3.1 million profit (including year-to-date share of profit) during this period while the previous period had seen a gain of S$2.2 million arise from Ascential's acquisition of the Group's interest in Intrepid.
Interim Dividend
The Group declared an interim dividend of 2 Singapore cents per share, representing a dividend payout of 34.3% on 1H2023's attributable profit. The dividend declared translates to an annualised dividend yield of 7.3% based on the closing share price of S$0.55 on 10 August 2023.
Outlook for Key Businesses
Lifestyle
The post-COVID recovery momentum in China is beginning to slow down as evident in the drop in retail sales growth at 3.1% yoy in June 2023, the weakest performance since December 2022. At the same time, the unemployment rate in China hit a new high of 21.3% in June 2023. Meanwhile, the World Bank has also revised India's 2023/2024 GDP forecast from 6.6% to 6.3% amidst the expectation of slower consumption growth and challenging external conditions.
While there are apparent near-term headwinds, the Group remains optimistic about the long- term prospects of the business. Going forward, Thakral plans to expand its product portfolio further via distributorship agreements with more fragrance brand owners. Additionally, it is expanding its product range for drones to cover enterprise sectors including agriculture.
Thakral's Group CEO and Executive Director, Inderbethal Singh Thakral ("Bethal") said:
"We are cognisant of the macroeconomic headwinds in China and India which could potentially impact our Lifestyle business in the near term. However, the long-term growth potential of the business remains sound and we are looking to widen our product range and coverage to capture a larger share in both fragrance and lifestyle products markets."
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Disclaimer
Thakral Corporation Ltd. published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 12:46:07 UTC.
