GP Industries H2 net profit down 91% to S$2.2 million

GP INDUSTRIES on Tuesday (May 30) posted a 91 per cent drop in second-half net profit after the battery manufacturer recorded a drop in revenue and other operating income, as well as higher finance costs.

Net profit from continuing operations for the six months ended March stood at S$2.2 million, compared with S$25.1 million in the same period the previous year. This translates to earnings per share (EPS) of S$0.0047 from S$0.0518 previously.

Revenue for the second half fell 8.2 per cent to S$554.5 million from S$603.8 million in the same period the year before.

Other operating income was down 87.7 per cent on year to S$5 million from S$40.7 million. Finance costs, meanwhile, rose 71.8 per cent to S$16.9 million in H2 2023 from S$9.8 million in H2 2022.

Other operating expenses, however, were down 68 per cent to S$10.4 million from S$32.5 million previously.

The group’s full-year net profit from continuing operations fell 48.8 per cent year on year to S$22 million, translating to an EPS of S$0.0456.

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Full-year revenue slid 5.9 per cent to S$1.2 billion. GP Industries attributed the decline in revenue to poorer performance for its batteries business. Geographically, sales in Europe and the Americas fell, although Asia sales rose.

The board proposed a final dividend of S$0.015 for the full-year period, compared with S$0.02 the year before. The record date and date payable will be announced at a later date.

Shares of mainboard-listed GP Industries last traded at S$0.63 on May 23.