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.
See also: ASL Marine reports earnings of $20.4 mil for 1QFY2026 up 13.3% y-o-y
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.
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.
