Yeo Hiap Seng posts S$3.3m H2 loss on Covid-19 impact

BEVERAGE player Yeo Hiap Seng (YHS) recorded a S$3.3 million loss for H2 ended December, as sales took a hit from the impact of Covid-19. This reversed the S$3.1 million net profit from a year ago.

Nevertheless, the firm has recommended a final dividend of S$0.02 per share for FY2020, with the option to receive the dividend in scrip.

Revenue for H2 fell 7.5 per cent to S$159.4 million, while that for the full year dropped 10.3 per cent to S$321.9 million. Overall, YHS had a loss of S$10 million for FY2020, in contrast to a S$17.7 million net profit the previous year.

YHS said that its sales had slowed down due to channel shifts, softer consumer spending as well as lower agency sales. The full-year bottom line was also hit by the absence of one-off gains on asset disposals and fair value gains on financial assets, totalling S$14.8 million, alongside fair value gains on investment properties of S$2.3 million. Higher impairment of trade receivables was another factor.

YHS chief executive Samuel Koh said: "While Covid-19 will continue to pose uncertainty and pressure on our business, we are encouraged to see traction with the strategies which we have put in place.

"In FY2020, we doubled our e-commerce sales, achieved double-digit sales growth in our mainland China business for the second consecutive year and delivered double-digit sales growth in our food business."

The firm will focus on growing its core its food and beverage portfolio through adapting commercial strategies, new product innovation, strengthening its supply chain and driving productivity.

YHS has cash and cash equivalents of S$264.2 million as at end-2020 and no bank borrowings. It recognised Covid-19 relief of S$4.5 million during the year.

Shares of YHS closed at S$0.77 on Friday, up 0.65 per cent.