The higher gross profit came despite the 2.8% y-o-y drop in revenue of $41.4 million for the 2HFY2022.
For the FY2022, the company saw earnings fall by 5.0% y-o-y to $4.0 million no thanks to the $0.7 million net loss after tax recorded in the 1HFY2022. The group’s financial performance in the first half of the year was impacted by a prolonged shutdown of almost two and a half months at its manufacturing facility in Pasir Gudang, Johor, due to the movement control order (MCO) in Malaysia.
Revenue for the FY2022 fell by 21.7% y-o-y to $75.2 million. Gross profit fell 3.5% y-o-y to $20.0 million in the FY2022 while gross profit margin increased by 5.1 percentage points y-o-y to 26.6%.
As at June 30, the company’s net order book stood at a record high of $182.9 million, driven by 31 new boat orders in FY2022.
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According to the company, factory shutdowns which delayed production, reflected the robust demand for luxury boats as yachting remains an attractive alternative to leisure travel amid travel restrictions caused by the pandemic.
As the company participated in more physical boat shows following the easing of travel restrictions, boat show expenses were higher y-o-y. Combined with increased marketing expenses, total operating expenses for FY2022 increased to $17.3 million from $15.5 million in FY2021.
Earnings per share (EPS) for the FY2022 stood at 2.17 cents.
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Cash and cash equivalents stood at $36.3 million as at June 30.
Barring further supply chain and production disruptions, the company says it plans to increase its headcount to accelerate its production schedule and clear the backlog of orders. It will also continue to build bigger and sleeker luxury boat models with better fuel efficiency.
“Despite the various disruptions faced in 1HFY2022, Grand Banks closed our seventh consecutive profitable year, thanks to the efforts of the management team. The strong yachting market and return of boat shows present significant opportunity for Grand Banks, and we remain optimistic on the road ahead,” says chairman Heine Askaer-Jensen.
Grand Banks is proposing a final dividend of 0.5 cent per share for the period.
This is to thank its shareholders for their support during this challenging period, says CEO Mark Richards.
“We remain focused on growing our sales, as our yacht designs continue to gain popularity for their sleek designs and high fuel efficiency,” he adds. “That said, we are witnessing business uncertainty rise amid increasing global political tensions, higher interest rates, higher costs of raw materials and freight costs; we are closely monitoring the situation and will be ready to respond to ensure minimal business disruptions.”
Shares in Grand Banks closed flat at 27 cents on Aug 29.
