Dezign Format (SGX:UZF
) says that it is expected to report a lower net profit for FY2025 compared to the corresponding year (FY2024).
Dezign Format explained that the lower profitability was a result of “strategic expenditure” to accelerate its growth trajectory.
The expenditure includes immersive Location-based Entertainment and Experiences (LBE) and proprietary Intellectual Property (IP) development, as well as front-loaded setup and related costs for the Malaysia manufacturing facility.
On the other hand, margins were being impacted by project mix and inflationary pressures, while revenue was slightly lower y-o-y.
The company saw an increase in its operating costs due to headcount additions to support regional expansion. The one-off IPO related expenses and a tax under-provision also impacted its bottom line.
Dezign Format is currently in the process of finalising its unaudited consolidated financial results for FY2025 and is expected to be released on or before Feb 26.
See also: Digital Core REIT reported an unchanged DPU of 3.60 US cents for FY2025
Shares in Dezign Format closed at 22.5 cents on Feb 4.
