Nanofilm H2 profit falls 43.6% to S$25m on lower revenue, higher expenses

NANOFILM Technologies posted a 43.6 per cent drop in net profit to S$25 million in the six months ended Dec 31, 2022, down from S$44.3 million the year before.

This was mainly due to a fall in revenue during the second half of FY2022, along with an increase in some expenses.

Earnings per share for H2 FY2022 stood at 3.8 Singapore cents, down from 6.71 Singapore cents in the same period a year ago.

Revenue for H2 FY2022 fell 16 per cent to S$126.1 million, from S$150.1 million last year. Administrative expenses during the same period rose 27.8 per cent to S$24 million.

The company’s directors have proposed a final dividend of S$0.011 per share for H2 FY2022, up from S$0.01 per share the year before, Nanofilm said on Tuesday (Feb 21).

For the full year ended Dec 31, 2022, net profit was down 29.6 per cent to S$43.8 million, while revenue dipped 3.8 per cent in the same period to S$237.4 million.

In an earlier bourse filing on Feb 2, Nanofilm had said that the decrease in net profit in FY2022 was due in part to one-off costs of around S$2.5 million related to Covid-19 restrictions; a net loss of around S$1.6 million incurred by its subsidiary, Sydrogen Energy; and fixed indirect costs that could not be reduced in tandem with the reduction in revenue.

Gary Ho, Nanofilm’s group chief executive, said: “Despite a difficult and ever-changing macro environment, we remain focused on executing our plans in our key strategic areas with the aim of achieving our 2025 target.”

Nanofilm “remains focused” on achieving its medium-term targets of S$500 million in revenue and S$100 million in net profit by 2025, it said, though its growth path towards the goal is “realistically expected to be non-linear”.

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The counter gained 3 per cent or S$0.04 to S$1.36 on Tuesday, prior to the announcement.