Tat Seng Packaging Group has reported earnings of $10.9 million for the 1HFY2022 ended June, 0.2% higher y-o-y.
Revenue fell by 0.3% y-o-y to $175.4 million due to the lower revenue of the group’s China operations and mitigated by the higher revenue in its Singapore operations.
Cost of sales increased by 2.7% y-o-y to $144.7 million.
Gross profit fell by 12.6% y-o-y to $30.7 million due to higher raw material costs and a drop in demand due to weak economic performance. The group was also unable to pass on the increase in costs due to the “highly competitive environment”.
Other income increased by 63.7% y-o-y to $1.8 million mainly due to foreign exchange gain, gain from derecognition of right-of-use assets and higher interest income in 1HFY2022 as compared to 1H2021. However, it was partially offset by the reduction of amortisation of deferred income.
Earnings per share (EPS) for the period stood at 6.93 cents.
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Cash and cash equivalents stood at $59.3 million as at June 30.
The group has declared an interim dividend of 1.5 cents per share, same as the year before, payable on Sept 27.
Shares in Tat Seng closed flat at 69 cents on Aug 10.
