Marine engine distributor XMH Holdings announced on Dec 12 a strong set of results for the six months ending Oct 31, recording growth for all three of its business segments.
However, the gross profit margin decreased to 32.9% in 1HFY2026 from 36.3% in 1HFY2025. The company attributes the decline to additional costs for meeting the deliveries deadlines and higher customer discounts.
Year-on-year, the mainboard-listed company increased revenue by more than 40% to nearly $94 million, gross profit by 27.3% to approximately $31 million and net profit by 23% to around $15.5 million. EPS attributable to shareholders increased by around 22.5% to 14.09 cents.
The company also pared down its short-term borrowings from more than $30 million to around $10 million on a y-o-y basis. Its cash holdings also increased y-o-y by more than 17% to around $25.6 million.
The company’s three business segments include: distribution of propulsion engines; after-sales services such as spare parts, trading and services (presumably repairs and servicing); and project which pertains to the manufacturing, sale and commission of power generators.
On a y-o-y basis, revenue for the distribution business increased by nearly 18% to more than $49.9 million. The after-sales segment saw revenue of around $8.4 million, a 9% increase. Lastly, the project segment earned around $35.6 million in revenue representing a y-o-y increase of 84%.
See also: Marco Polo Marine's FY2025 earnings up 169.7% y-o-y on one-off gains and higher chartering income
In its earnings statement, XMH expects its business activity to “remain healthy” in the second half of the financial year and expresses optimism about growth.
In September, XMH announced that it had been slapped with a $143.9 billion ($11.2 million) rupiah tax bill by Indonesia for FY ended 30 April 2024. XMH’s net profit for FY2025 was $25.5 million.
The counter remains flat at $1.56 on Dec 15.
