Group revenue for 1H2024 decreased by 23.1% to S$51.1 million due to lower revenue from its medical devices segment and profit after tax decreased by 91.1% to S$0.2 million.

Revenue for the medical devices segment was S$31.7 million in 1H2024, a decrease of 33.1% due to the reduction in orders from certain customers as they continued to rebalance their post pandemic inventory levels in response to the gradual recovery of the global logistics situation. The pipes and pipe fittings segment however recorded an increase of 1.7% in revenue to S$19.4 million in 1H2024 as construction activities in Singapore improved.

Overall, the Group recorded profit before tax of S$0.3 million for 1H2024, which was a decrease of 91.6%
from S$3.3 million for 1H2023; and profit after tax of S$0.2 million for 1H2024, which was a decrease of
91.1% from S$2.5 million for 1H2023. This translates into an earnings per share of 0.04 Singapore cents for 1H2024 (1H2024: 0.49 Singapore cents). The Group’s adjusted EBITDA for 1H2024 was S$4.0 million,
which was a smaller decrease in percentage terms of 45.9%, compared to S$7.4 million for 1H2023.

The current expectation is for the Group’s revenue growth to be somewhat constrained due to the conditions faced by the medical devices segment as discussed, whilst the pipes and pipe fittings segment is expected to continue its positive path. The Group also faces increasing operating costs due to inflationary pressures and higher investment, development and expansion costs.

While the Group remains cautiously optimistic, it is keeping a vigilant watch on challenges that may arise from uncertainties in the wider macro environment and the ongoing inflationary and interest rate pressures. The Group will continue to exercise prudent cost management, while developing new business opportunities, and strengthening its base for future growth.

Vicplas International Ltd

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