Frencken Group has reported slightly higher revenue of $786.1 million for FY2022. However, higher operating costs, especially incurred by its operations in Europe, led to lower earnings of $51.9 million for FY2022, down 11.7% over FY2021.
Higher capex, inventory write-off and finance costs also combined to weigh down the bottom line.
Given the challenging and uncertain macroeconomic backdrop, Frencken, led by president and executive director Dennis Au (picture) is adopting a cautious view for FY2023.
Based on current indicators and barring unforeseen circumstances, the company expects revenue from the current 1HFY2023 ending June to be lower versus the preceding 2HFY2022 ended Dece 2022.
"Present business visibility is hampered by volatile market conditions. The group will update its revenue guidance as and when appropriate," says Frencken.
The company plans to pay a first and final dividend of 3.64 cents. This time last year, it paid 4.13 cents.
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Frencken shares closed Feb 27 at $1.13, down 1.74%.
