XMH Holdings, the provider of diesel engine, propulsion and power generating solutions in the marine and industrial sectors, posted earnings of $1.1 million for 1HFY2023 ended October, a 2.8% increase from a year ago.
This translates to earnings per share of 98 cents, up 1 cent from 1HFY2022.
For the period, XMH recorded a revenue of $57.9 million, up 74.3% y-o-y. Its cost of sales almost doubled from $24.6 million for the period last year to $46.1 million in 1HFY2023.
“The Group’s order books of its distribution and project segments continue to remain healthy and demand for the Group’s engines for new and/or replacement tugboats increased due to increased demand for transportation of mineral resources/commodities. The Group also continues to see strong demand in generators for data centers,” XMH chairman and managing director Tan Tin Yeow explains.
XMH’s gross profit margin decreased from 26.0% in 1HFY2022 to 20.5% in 1HFY2023, which it attributes to lower profit margins from a “major project”, increases materials cost and labour shortages, which resulted in subcontracting certain job functions, and increased provision for stock obsolescence.
As at end-October, cash and cash equivalents stood at $9.8 million.
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“Though the Group continues to experience healthy book orders, the Group will still be mindful of the challenging and uncertain environment brought about by the geopolitical tensions,” says Tan.
“The Group will continue to remain nimble, adaptable and resilient. We will constantly improvise our operational procedures where necessary to address and adapt to changes and prepare ourselves for any unexpected headwinds,” he adds.
Shares in XMH closed at 25 cents on Dec 12.