Yeo Hiap Seng narrows H2 loss to S$1.7m, proposes flat final dividend of S$0.02

BEVERAGE maker Yeo Hiap Seng (YHS) on Friday (Feb 25) posted red ink to the tune of S$1.7 million for the second half of FY2021 ended December, narrowing from losses of S$3.3 million in the comparable year-ago period.

On a per-share basis, this came to a loss of S$0.0029, versus a loss of S$0.0057 in H2 FY2020.

This brought the group's losses for FY2021 to S$2.9 million, down from a loss of S$10 million in FY2020. Over the course of the year, a number of YHS's markets - including Malaysia, mainland China, Indonesia and Europe - turned in "double-digit increase" to their revenues.

For H2, the group is recommending a final cash or scrip dividend of S$0.02 per ordinary share, unchanged from the year-ago period. The book closure and payable dates will be announced in due course, said YHS.

Revenue for H2 was up 5.8 per cent year-on-year to S$168.6 million from S$159.4 million. Core food and beverage (F&B) revenue was up 7.4 per cent to S$150.2 million, accounting for 89 per cent of total topline amid the group's continued strategies to optimise its portfolio.

Cost of sales for the period rose 5.4 per cent to S$122.2 million from S$115.9 million, while gross profit was up 6.8 per cent to S$46.4 million.

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Gross profit margin for H2 improved to 27.5 per cent from 27.3 per cent in H2 FY2020, which YHS attributed to its efforts to improve sales mix and product portfolio despite cost pressures on raw materials and freight.

Samuel Koh, chief executive of YHS, said: "2021 was a year where Yeo's had to navigate significant challenges posed by the ongoing global pandemic, as well as the ensuing supply chain disruptions and operating costs inflation that resulted from it. I am pleased to update that we have made good progress in strengthening our core business."

Looking ahead, YHS said it will build on its positive momentum, and continue to drive its core F&B segment's growth net price increase, SKU (stock-keeping unit) rationalisation and cost reduction.

Shares of Yeo Hiap Seng ended Friday at S$0.875, up 3.6 per cent or S$0.03.