F J Benjamin Holdings has posted earnings of $1.7 million for its 1HFY2023 ended December, a reversal from a net loss of $1.3 million in the previous corresponding period.

 

The turnaround reflected higher sales volume as consumer demand returned in line with the abating of the Covid-19 pandemic.

 

Turnover rose 26% y-o-y to $45.7 million in 1HFY2023, with sales improving in all three markets &mdash Singapore, Indonesia and Malaysia.

 

With more consumers returning to shop at brick-and-mortar stores, the company&rsquo s online sales saw a decline in contribution, from 6% of total sales in 1HFY2022 to 3% in 1HFY2023. Despite this, e-commerce remains a key pillar of F J Benjamin&rsquo s long-term strategy.

 

Gross profit margin rose to 53% in 1HFY2023 from 47% in 1HFY2022, mirroring the increased footfall at physical stores to satisfy pent up consumer demand after three years of pandemic restrictions on movements. As a result, the company was able to clear more inventory and had less to put on sale at a lower margin.

 

Group operating expenses rose 21% to $22.3 million in 1HFY2023 due to higher rents, increased staff costs and higher travelling costs. The rise in operating expenses was partly offset by lower depreciation of right-of-use assets resulting from expired leases.

 

F J Benjamin&rsquo s group CEO Douglas Benjamin says the company is optimistic that the business upturn will be sustained in the near term, supported by the return of Chinese tourists to Southeast Asia. &ldquo We look forward to capitalising on this momentum in the coming months even as we keep a wary eye on a possible recession in the west spilling over to Asia.&rdquo

 

F J Benjamin Holdings has reported earnings of $4.3 million for 2HFY2022, reversing from the loss of US$13.4 million reported in 2HFY2022.

 

During the FY2022, the group saw earnings of $2.9 million, from its loss of $10.8 million in the FY2021.

 

Earnings per share (EPS) stood at 0.37 cents for 2HFY2022 compared to loss per share of 72 cents for 2HFY2021.

 

EPS for FY2022 stood at 0.27 cents, compared to a loss per share of 1.14 cents for FY2021.

 

In the second half of FY2022, the company saw writebacks totalling $1.5 million for impairments and reversed allowances for expected credit losses on receivables from an Indonesian associate and related party.

 

Revenue for 2HFY2022 grew 55% y-o-y to $44.7 million, while FY2022&rsquo s revenue rose 21% to $80.9 million with sales in Singapore (excluding exports to Indonesia) and Malaysia gaining 6% and 28% respectively.

 

The company said the revenue growth came in the second half of FY2022, when sales momentum picked up strongly following a sluggish first quarter when many of its stores were closed and business was interrupted due to intermittent COVID-19 disruptions.

 

Gross profit grew 53% y-o-y to $23 million for 2HFY2022, while FY2022&rsquo s gross profit at $39.9 million is an 18% increase y-o-y from FY2021&rsquo s $33.7 million.

 

Gross profit margin eased from 50.5% in FY2021 to 49.4% in FY2022 as Malaysia took the opportunity to clear stocks to satisfy pent-up demand, the company adds.

 

Net borrowings totalled $4 million as at 30 June 2022, as compared to $10.6 million as at 30 June 2021. Gearing stood at 10% as at 30 June 2022, against 32% as at 30 June 2021.

 

Although its revenue is not fully back to pre-Covid-19 levels, the company is cautiously optimistic that the strong momentum seen in the second half of FY2022 can be maintained barring any unforeseen circumstances, says F J Benjamin group CEO Nash Benjamin.

 

&ldquo We are of course aware that there are rising inflationary and geopolitical risks but these are risks that management will need to manage and mitigate.&rdquo