Noel Gifts posts S$1.2 million H1 loss but expects full-year profit on proceeds of collective sale
MAINBOARD-LISTED Noel Gifts International reported a net loss of S$1.2 million for the first half ended Dec 31, 2023, as its losses widened 84.1 per cent year-on-year from S$0.6 million. (See *Amendment note)
In a bourse filing on Monday (Feb 5), the gifts marketing and property investment company attributed its losses to lower sales from its gifts division in the period and “ever-changing consumer demand”.
It predicts “another year of challenging operating environment” for the division, and for its full-year performance to be negatively impacted as a result.
Revenue for the six months dropped 16.4 per cent to S$6.2 million, down from S$7.4 million in the previous corresponding period. Gross profit fell by 14.5 per cent to S$3.1 million, from S$3.6 million.
However, the company also said it expects FY2024 to be profitable as a result of the collective sale of units it owns at 50 Playfair Road.
A freehold property located in Tai Seng Industrial Estate, it was launched for collective sale in mid-October 2023 and was sold for S$81.2 million, around 16 per cent above its guide price of S$70 million.
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For the 10 units it owns in the property, Noel Gifts expects to net S$30.6 million from the sale.
Assuming that the collective sale is completed by Jun 30, the proceeds will contribute positively to the company’s FY2024 financial results and position, Noel Gifts said in a separate filing in January.
Shares of Noel Gifts closed flat at S$0.265 on Monday, before the announcement.
* Amendment note: An earlier version of the story incorrectly stated that Noel Gifts International’s losses widened 53.9 per cent to S$1.2 million for the first half ended Dec 31, 2023. It is in fact 84.1 per cent.
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