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Latest Financials
Condensed Interim Financial Statements For the six months and full year ended 31 December 2024
Financials Archive
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Condensed Interim Consolidated Income Statement
Note:
(1) Diluted earnings per share for 6 months and 12 months ended 31 December 2024 and 2023 are the same as basic
earnings per share as there were no potentially dilutive ordinary shares.
(2) EBITDA is earnings before taxes, interest, depreciation and amortisation.
NM - Not meaningful.
Condensed Interim Consolidated Statement Of Comprehensive Income
Condensed Interim Balance Sheets
Review of Performance of the Group
Review of the Group’s 2H and FY2024 Financial Performance
The Group recorded FY2024 revenue of US$502.7 million and PATMI of US$33.9 million, reflecting Y-o-Y declines of 6.6% and 26.6%, respectively, in the Group’s US Dollar reporting currency. On a constant currency basis, revenue and PATMI would have been lower instead by 3.9% and 22.9%, respectively. The following key factors contributed to the Group’s performance:
- Regional Currencies Weakness - The Indonesia Rupiah depreciated by 3.9% against the US Dollar, impacting raw material costs and resulting in a 110 basis points (“bps”) decline in our FY2024 Gross Profit Margin. To offset the forex impact and the anticipated rise in raw materials costs, we had proactively implemented a price adjustment in May for selected brands in Indonesia.
- To drive long-term growth of our brands and counter strong competition, we increased our promotional investments in 2H 2024, which led to an increase in our market share in Indonesia, driven mainly by our SilverQueen and Cha Cha brands.
- Agency Brands Performance - Net Sales in FY2024 for Agency Brands declined by 3.4% Y-o-Y due to the termination of an agency brand in the 3rd quarter of 2023. On a comparable basis (i.e. excluding the terminated agency brand), Net Sales for Agency Brands grew by 4.9% Y-o-Y.
With continued tight management of our working capital, the Group in 2024 generated net cash from operating activities of US$52.6 million, a Y-o-Y increase of US$27.4 million. The cash generated was mainly used to fund our capital expenditure programme for capacity expansion, that was started in 2023, and to improve efficiencies. As at 31 December 2024, our cash balance stood at US$43.8 million.
The Board is proposing a final dividend of 1.18 US cents/share (1.57 Singapore cents/share). Taken together with the interim dividend of 2.06 US cents/share (2.72 Singapore cents/share), that was paid on 12 September 2024, total 2024 dividends will be 3.24 US cents/share (4.29 Singapore cents/share). If the final dividend is approved by shareholders at the Annual General Meeting on 29 April 2025, the final dividend will be payable on 16 May 2025.
Performance Review by Markets
Indonesia
Our business in Indonesia recorded revenue of US$314.3 million for the year, reflecting a 11.0% Y-o-Y decline. This was primarily due to a 10.4% Y-o-Y decrease in Own Brands and a 12.5% Y-o-Y decline in Agency Brands. The decline in Agency Brands was mainly due to the termination of an agency brand in 2023. Excluding this impact, Agency Brands for Indonesia would have recorded Y-o-Y growth of 5.5%.
The Regional Markets
For Regional Markets, FY2024 revenues reached US$188.4 million, reflecting a 1.8% increase compared to FY2023. The increase was from growth in Agency Brands, particularly in Malaysia and the Philippines.
Review of Profitability
Our overall Gross Profit Margin (“GPM”) was 25.9% in 2H 2024 and 27.4% for FY2024, a Y-o-Y reduction of 1.8% points and 1.1% points respectively. This can be attributed to the depreciation of regional currencies, particularly a 3.9% decline in the Indonesian Rupiah against the US Dollar, which impacted our raw material costs. To mitigate the currency weaknesses, and the anticipated rise in raw material costs, we proactively implemented a price adjustment in May for selected key brands in Indonesia.
The Group reported EBITDA of US$27.5 million in 2H 2024 and US$60.3 million for FY2024, reflecting a Y-o-Y decline of 20.2% and 19.0%, respectively. This was mainly due to lower Net Sales, reduced GPM and higher operating costs. Consequently, the EBITDA margin was 11.4% and 12.0% for 2H 2024 and FY2024, respectively.
Review of Financial Position and Cash Flow
With our disciplined approach to working capital management, the Group generated net cash from operations of US$52.6 million, a Y-o-Y increase of US$27.4 million. We allocated US$28.6 million of this to capital expenditures, primarily for our capacity expansion programme that began in 2023 and to improve efficiencies. This capex programme is constantly monitored and reassessed in response to market conditions and could be adjusted as necessary.
Amid persistent inflation and supply chain challenges in the region, we remain vigilant in managing our inventory levels to ensure a stable supply of raw materials and essential inputs. Additionally, we are committed to maintaining stringent working capital controls.
As at 31 December 2024, the Group’s cash and bank deposits stood at US$43.8 million, after dividend payments of US$26.5 million and capital expenditures of US$28.6 million. Our strong balance sheet continues to provide resilience against potential uncertainties ahead.
Total assets at year-end 2024 reached US$428.2 million, reflecting an increase of US$7.3 million from 31 December 2023. This growth was primarily driven by: (i) higher inventories to support stronger sales anticipated for Valentine’s Day and Lebaran festivities in 1Q 2025; (ii) increases in property, plant and equipment; and (iii) partially offset by the lower cash balance. Shareholders’ equity decreased by US$1.6 million due to lower retained earnings, a higher foreign currency translation loss and the impact from US$26.5 million dividend payment.
Commentary
The global environment is expected to remain challenging. Geopolitical tensions, increased trade wars, and macroeconomic headwinds like currency volatility and inflation pressures are expected to persist from last year through 2025. For chocolate manufacturers globally, the biggest headwind is the significant increase in cocoa bean prices which will pressure earnings.
Despite these challenges, we have achieved a good start to 2025, with sales momentum from the second half of 2024 carrying forward. This reflects the strength of our brands, especially our iconic SilverQueen, and our investments in their growth. In addition, we continued to strengthen our collaborations with retail partners to further boost consumer engagement.
Given the sustained increase in cocoa prices since last year, our teams have been proactively developing initiatives to mitigate the impact of higher input costs. These strategies include price adjustments, as well as improvements to operational efficiency across our supply chain. During this period, our innovation strength has enabled us to optimise cost savings without compromising the quality and taste profile of our products.
The current environment, along with the rising cocoa and chocolate prices, will present challenges in both demand and cost, potentially affecting profitability. Nonetheless, we remain focused on the long-term success of our business as we work through these hurdles.
Our solid business foundation, which includes deep expertise in the cocoa and chocolate sector, well-established brands in our markets, a culture of innovation, strong distribution networks, a healthy balance sheet, and consistent cash flow, will continue to play an important role in navigating the present landscape.
While the future remains uncertain, we will continue to closely monitor the situation and make any necessary adjustments to stay on track.