The Hour Glass posts 9% fall in H1 profit to S$77 million
Sharanya Pillai
LUXURY watch retailer The Hour Glass 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.
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.
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