It seems that F&B manufacturer Yeo Hiap Seng (Yeo’s) is on its way to recovery. For the FY2021 ended December 2021, Yeo’s recorded a loss of $2.9 million, compared to a loss of $10.0 million in FY2020. The group attributes this to its continuous drive for positive momentum in its F&B revenue with a strong focus on its profit margin.
This was supported by a 5.0% y-o-y increase in revenue to $337.9 million from $321.8 million a year ago, while gross profit margin increased to 29.7% from 28.4%, led by higher contribution from the group’s consumer F&B products.
Among the countries that the group has its business in, Malaysia is the group’s largest revenue contributor, followed by Singapore and other Asia Pacific countries. The group attributes its increase in revenue to the recovery of its markets, especially Malaysia, Mainland China, Indonesia and Europe, all of which recorded double-digit increments to revenues.
During the period, Yeo’s recorded $3.8 million in other gains, compared to other losses of $0.4 million in the previous year, due to fair value gains on investments in financial assets made during the year.
As at end December, cash and cash equivalents stood at $230.9 million.
The group has proposed a final dividend of 2 cents per share, unchanged from the previous year.
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Samuel Koh, Yeo’s group CEO says: “2021 was a year where Yeo’s had to navigate significant challenges posed by the ongoing global pandemic, as well as the ensuing supply chain disruptions and operating costs inflation that resulted from it.”
“I am pleased to update that we have made good progress in strengthening our core business. Core Yeo’s F&B revenue grew a further 10.9% during the year and reached the highest level since 2016. We are excited to continue the execution of our longer-term strategic plan for the group to further accelerate its transformation and growth in 2022,” he adds.
Looking ahead, the group admits that uncertainties still lie as a result of the ongoing pandemic. Despite operating cost inflation and supply chain uncertainty, the group aims to build on its positive momentum and continue to drive its core F&B growth, increase its net price, reduce cost and rationalise its stock-keeping unit (SKU).
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As at 3.35pm, shares in Yeo’s are trading at 85 cents.
Photo: Samuel Isaac Chua/The Edge Singapore
