The Hour Glass has reported earnings of $82.5 million for the FY2021 ended March, representing 8% y-o-y growth from $77.4 million previously, on the back of a stronger second half of the year.
Earnings per share (EPS) for the period came in at 11.71 cents, up 9% y-o-y.
Revenue remained relatively flat at $742.9 million for the FY2021, 1% lower y-o-y. However, gross margins improved from 28.8% in FY2020 to 29.2% in FY2021, primarily driven by a reduction in salaries and employee benefits, selling and promotion expenses, and rental expenses.
To that end, pbt grew 16% y-o-y to $109.9 million. This was partially offset by an increase in taxes, which grew 43% y-o-y to $25.4 million. To that end, pat came in at $84.5 million, up 9% y-o-y.
Cash and bank balances stood at $247.9 million as at March 31, while consolidated net assets stood at $680 million.
SEE:The Hour Glass' 1HFY2021 earnings fall 15% to $29.7 mil
The board of directors has recommended a final dividend of 4 cents per share for FY2021, compared to 2 cents in FY2020.
Looking ahead, The Hour Glass anticipates consumer sentiment to be volatile given the ongoing Covid-19 circumstances. Nonetheless, it expects to remain profitable in FY2022.
Michael Tay, group managing director of The Hour Glass, says the group’s execution of its post-lockdown recovery strategy underpins its performance. “We built positive sales momentum for a strong second-half performance in both emerging and mature markets. Mindful of the prospective business and operational disruptions that may be caused by Covid-19, we balanced our financial prudence with long-term capital allocation decisions that will bode well for the group’s future development,” he says.
Shares in The Hour Glass closed 0.5 cents or 0.52% higher at 96 cents on May 20.
