Creative Technology posts higher profit for H1 FY22 on gain from disposal

CREATIVE Technology posted a net profit of US$1.2 million for the half year ended Dec 31, 2021, rising from US$45,000 in the corresponding period a year ago, lifted by a gain arising from the disposal of a property.

Sales slid 28 per cent year-on-year to US$34.1 million, hit by the global shortage of semiconductors and delays in shipping schedules.

Gross profit was 27 per cent lower at around US$11.6 million, while gross profit margin was slightly higher at 34 per cent, up from 33 per cent, on the back of a rise in freight costs and some semiconductor components.

Earnings per share worked out to US$0.02 for the 6-month period.

During the period under review, Creative saw other gains (net) of US$9.7 million, thanks to a US$10 million gain from the disposal of a property in the United States, which was partly offset by a foreign exchange loss of US$0.3 million.

No dividend was recommended for the period under review, which was the case last year as well.

Shares in Creative closed unchanged at S$2.23 on Wednesday (Feb 9).