Vibrant Group reported an earnings increase of 20.4% to $3.5 million for the 1HFY2023 ended October, up from $2.9 million a year ago.
This translates to earnings per share of 51 cents for the period, compared to 43 cents for 1HFY2022.
Vibrant’s revenue for 1HFY2023 was $95.5 million, with a cost of sales of $65.1 million, compared to $93.7 million and $70.0 million for the period last year. This saw its gross profit increase to $30.4 million, a 29% increase compared to last year.
As at Oct 31, Vibrant has cash and cash equivalents of $62.0 million.
“Supply shocks arising during the onset of the Covid-19 pandemic have generally dissipated. However, the geo-political tension and uncertainty arising from the war in Ukraine and tensions between China and the West continue to pose systemic risks to the global economy,” says executive director and CEO Eric Khua.
“Nevertheless, our freight and logistics segment has continued to perform better in this interim period than the corresponding period,” he adds.
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Khua says Vibrant remains cautious about its freight and logistics business, as global freight rates have dropped considerably and impacting its revenue. “Furthermore, as we approach the traditional quieter months leading up to year end and the lunar New Year, demand for freight is generally expected to be slow and the situation may also be affected by both overstocking as well the lack of key raw materials,” he explains.
Shares in Vibrant traded flat at 8.7 cents on Dec 13.
