Lion Asiapac reports 4th quarter loss despite revenue growth

MAINBOARD-LISTED Lion Asiapac reported a loss of S$707,000 in the fourth quarter, reversing a S$96,000 net profit from a year ago, due mainly to an exchange loss and limekiln refurbishment cost.

This brings its loss for the full-year ended Jun 30, 2022 to S$1.6 million, reversing a S$937,000 profit in the previous financial year, according to financial statements filed after the market closed on Monday (Aug 22).

Revenue in Q4 grew 34 per cent to S$8.3 million, with its full-year revenue rising 54 per cent year on year to S$29.7 million. This came on the back of increased demand for steel consumables, which grew by S$8.9 million to S$11.1 million. Additionally, lime sales increased by 9 per cent to S$18.6 million.

However, lime sales incurred a loss of S$1.6 million, against a breakeven the previous year due largely to escalating production and overhead costs.

There were also losses incurred for trading and investment holdings for the year.

Loss per share for the fiscal year stands at 1.92 cents, versus earnings per share of 1.16 cents for the previous financial year.

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“The group’s operations are subject to the market conditions and challenges of the steel industry. Escalating costs and the uncertainties in the market will continue to pose constraints to the group’s core businesses,” said the company.

No dividends were declared.

Shares of Lion Asiapac closed unchanged at S$0.34 on Monday.