The revenue growth came about despite average selling prices generally easing in FY2023 in tandem with a decline in international steel prices.
For 2HFY2023, revenue decreased 23% y-o-y to $32.9 million compared to $42.5 million in 2HFY2022 due to lower sales tonnage and softer average selling prices.
Asia Enterprises’s gross profit for FY2023 increased 13% y-o-y to $15.4 million, while gross profit for 2HFY2023 increased 8% y-o-y to $6.7 million.
Meanwhile, gross profit margin improved to 20.4% in 2HFY2023 and declined to 16.2% for the full-year period.
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Cash and cash equivalents stood at $41.9 million as at Dec 31, 2023.
Asia Enterprises has recommended the payment of a final dividend of 1.0 cent per share for FY2023, representing a payout of 56.2% of FY2023 net profit, compared to the 0.8 cents paid in FY2022.
Managing director Yvonne Lee says: “Notwithstanding the weak macroeconomic environment and downtrend in international steel prices during FY2023, the group delivered our strongest set of financial results over the past decade. This was driven by a general improvement in demand for steel materials from customers in our key marine & offshore segment. In particular, we saw higher steel requirements for new building and repair activities at our customers’ shipyards in Indonesia.
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Looking ahead to FY2024, the company says it will continue to adopt a cautious business view due to numerous global uncertainties. “The steel distribution industry in Singapore is expected to continue facing operating cost pressures and a competitive environment. Given the prevailing economic uncertainties and tapering of end-user demand after a robust first half in FY2023, we remain cautious this softer trend could persist into FY2024,” says Lee.
Shares in Asia Enterprises closed 0.1 cent higher or 0.79% up at 12.8 cents.
