Precision plastics parts maker Fu Yu Corp has recorded a net loss of $1.9 million in 9MFY2024 ended September, after including forex losses and taxation, compared to a net loss of $5.8 million in the same period last year.
This came on the back of a net loss of $3 from its manufacturing division, which was partially offset by the group’s supply chain management services division’s net profit of $1.1 million.
Meanwhile, the group recorded an operating profit of $0.8 million for 9MFY2024, reversing from an operating loss of $6.5 million in 9MFY2023.
For the same period, revenue rose by 55.2% y-o-y to $162 million, driven by higher sales across the group’s manufacturing and supply chain solutions divisions.
For 3QFY2024, the group’s revenue saw a 7.6% y-o-y increase to $35.7 million, due to improved performance from Fu Yu’s manufacturing business. Contributions from the group’s Singapore and Malaysia operations grew 13.7% and 31.8%, respectively, in 9MFY2024 to $33.3 million and $27.8 million, respectively. This was partially offset by lower sales from China.
Similarly, gross profit from the group’s manufacturing segment saw a 15.5% y-o-y increase to $10.6 million in 9MFY2024, while gross profit margin for the segment stood at 12.4%, up from 11.6% a year ago.
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For its supply chain segment, the group recorded revenue contributions of $76.4 million, up from $25 million in 9MFY2023. This came on the back of higher demand amid a global economic recovery, says the group.
Gross profit margin for the segment increased to $1.5 million in the same period from $0.3 million in 9MFY2023, while gross profit margin stood at 1.9%.
Group-wide gross profit rose by 27.5% to $12.1 million in 9MFY2024, while gross profit margin for the group stood at 7.5%, mainly due to a change in revenue mix.
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Before foreign exchange, the group’s ebitda stood at $6.4 million, up from $0.1 million in 9MFY2023, due to growth in the manufacturing segment.
Moving forward, the group says it will continue to execute its transformation strategies to upgrade its manufacturing capabilities, move up the value chain to provide higher-precision products, and expand its customer base into new emerging industries.
As at Sept 30, the group’s net cash stood at $55.8 million or 7.3 cents per share.
David Seow, group CEO of Fu Yu, says: “Looking ahead, we will strive to secure new customers in the biomedical sector and maintain a healthy project pipeline. In response to macroeconomic headwinds and geopolitical headwinds, we will continue to implement our strategies for long-term transformation to diversify our customer base, particularly in the biomedical industry.”
Shares in Fu Yu closed 0.2 cents lower, or down 1.5%, at 13.1 cents on Nov 7.
