The Hour Glass posts 9% fall in H1 profit to S$77 million
LUXURY watch retailer The Hour Glass : AGS 0% on Tuesday (Nov 14) posted a 9 per cent fall in net profit for the first half of FY2024, as exchange rate movements hit its margins while revenue stayed flat.
Net profit for the six months ended Sep 30 fell to S$77 million, from S$84.6 million in the year-ago period. On a per-share basis, its earnings fell 7 per cent to S$0.1171, down from S$0.1258 previously.
The company nevertheless announced an interim dividend of S$0.02 per ordinary share, unchanged from a year earlier.
Revenue for the half-year inched up 1 per cent to S$558.4 million. But its gross margin narrowed to 30.9 per cent, compared to 32.4 per cent a year earlier. Its management attributed this partly to “unfavourable exchange rate movements”.
Costs and expenses were also up 2 per cent to S$476.7 million, with increases in finance costs, the cost of goods sold and depreciation of property, plant and equipment.
The company expects to remain profitable for the full financial year, but is cautious. “The prevailing economic environment and geopolitical uncertainties are expected to continue to impact consumer sentiment in the speciality watch sector,” it said in its earnings statement.
SEE ALSO
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The Hour Glass had S$206.5 million in cash and bank balances as at Sep 30. Its loans and borrowings stood at S$84 million, down from S$93.8 million as at Mar 31.
The company’s shares ended Tuesday flat at S$1.72.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UK's FTSE 100 hits record highs on Anglo-American boost
Holiday Inn owner IHG’s Q1 revenue up 2.6%, leisure travel demand remains strong
SocGen Q1 profit slumps less than expected as investment bank surprises
Wall Street Journal moves Asia headquarters from Hong Kong to Singapore
Macquarie sees biggest profit dip in 15 years on commodities downturn
HSBC appoints ex-Citi banker as new Singapore head of global banking