BRC Asia has reported earnings of $42.1 million for 1HFY2025 ended March 31, 2025, up 9% y-o-y.
The group’s revenue declined 6% y-o-y to $715.6 million for 1HFY2025, due to a broad-based softness in steel prices. However, delivery tonnage remained stable, reflecting continued demand and the group's ability to maintain its market share amid volatility.
Gross profit for 1HFY2025 fell 10% y-o-y to $67.4 million, and gross profit margin declined to 9.4%. This is due to a $7.7 million provision for onerous contracts, compared to a reversal of $3.1 million in the prior-year period.
A net foreign exchange gain of $2.5 million and net gain of $2.4 million from fair value changes in derivatives resulted in other income rising to $7.1 million in 1HFY2025.
Operating expenses decreased by 16% y-o-y due to lower finance costs and other operating expenses, partially offset by higher distribution and administrative expenses.
However, distribution expenses rose by 18% y-o-y, driven by costs associated with a new subsidiary in Thailand. Administrative expenses increased by 11% y-o-y, due to higher legal and professional fees related to potential acquisitions and increased bonus provisions resulting from better financial performance.
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As at end March, the group’s cash and cash equivalents stood at $143.8 million, and net assets came in at $478.6 million.
The group’s order book stood at $1.5 billion as at end March.
The board has proposed an interim dividend of 6 cents per share.
"The stable delivery tonnage in 1HFY2025 reflects the resilience of our operations and the sustained demand from the domestic construction industry. Given strategic government initiatives and a robust domestic project pipeline, we remain confident in the agility and stability of Singapore's construction industry amidst a subdued economic outlook,” says Seah Kiin Peng, Executive Director and CEO of BRC Asia.
Shares in BRC Asia closed flat at $3.11 on May 13.
