Stamford Tyres H1 profit falls 24.5% to S$1.6 million on lower sales

STAMFORD Tyres posted a 24.5 per cent drop in net profit to S$1.6 million for its first half ended Oct 31, 2023, from S$2.1 million in the previous corresponding period.

This was mainly due to lower sales and gross profit margin, which was chipped away by the higher tyres and wheel production costs, said the tyre and wheel distributor in a bourse filing on Thursday (Dec 14) evening.

Earnings per share stood at 0.68 Singapore cent for the first half, down from 0.90 Singapore cent the previous year.

Revenue for H1 fell 1.4 per cent to S$95.6 million, from S$97 million a year earlier. This was primarily due to lower sales in the South-east Asia and export markets, said the company.

No dividend was declared for the half year, unchanged from the year before. Instead, the declaration of dividends will be determined at the end of the financial year.

“The global economic outlook remains challenging,” said Stamford Tyres executive director Wee Li Ann. To address this, the group has “deployed resources and implemented strategies to diversify its product offerings to adapt to the ongoing market changes”.

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Stamford Tyres more than doubles H1 net profit to S$2.1 million

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The group will also focus on improving its sales productivity and upgrading “value-added segments” such as the Stamford Tyres Mall retail chain and truck centres.

Shares of Stamford Tyres closed S$0.002 or 1.1 per cent higher at S$0.191 on Thursday, before the results were released.