Taka Jewellery Holdings posts 32% fall in H2 net profit to S$2.7 million

TAKA Jewellery Holdings on Thursday (Aug 24) posted a 32 per cent drop in net profit for the fiscal second half from the year before.

Net profit for the six months ended Jun 30 stood at S$2.7 million, compared with a net profit of S$4 million in the same period a year ago. The results translate to earnings per share of 0.7 Singapore cent, against earnings per share of 0.72 Singapore cent in the year-ago period.

H2 revenue was up 26 per cent at S$74.2 million.

For the full year, net profit for the jewellery retailer and wholesaler grew to S$9 million, from S$5.9 million a year ago, translating to earnings per share of 1.61 Singapore cents, against FY2022’s earnings per share of 1.05 Singapore cents. 

The company attributed this to increased activities from overseas exhibitions and change of product sales mix.

Full-year revenue grew 40 per cent to S$145.9 million on an increase in international trade fair sales as a result of further easing of Covid-19 travel restrictions around the world.

Topline for the wholesale and exhibition business segment came in 46 per cent higher at S$61 million for the full year, from S$41.7 million in the previous FY.

Nevertheless, Taka’s retail business still generated the highest revenue, growing 37 per cent to S$81.5 million, from S$59.7 million in FY2022, as jewellery revenue rose.

No final dividend has been declared, with the company saying it’s aiming to conserve cash for working capital purposes.

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Looking ahead, the group said it expects the cost of operations – including labour, materials, interest rates and other overheads – to continue trending up, driven by inflationary pressures.

However, it is “cautiously optimistic” that business profitability will remain healthy, while it prepares for a possible significant slowdown in business conditions and uncertainties.

Priorities for the company include having a centralised marketing strategy, product portfolio innovations, enhanced operational efficiencies, and accelerated digital transformation across all business segments, it added.

Shares of Taka Jewellery Holdings closed at S$0.087 on Thursday, up 1.2 per cent or S$0.001.