Tyre maker YHI International has reported earnings of $19.2 million for the FY2020 ended December, 47.8% higher than earnings of $13.0 million in FY2019.

While FY2020 revenue saw a 5.7% y-o-y decrease to $422.8 million due to lower sales in both the group’s distribution and manufacturing business, gross profit was 5.6% y-o-y higher at $101.4 million mainly due to the higher gross profit margin (GPM).

GPM for the year increased 2.6 percentage points to 24.0% due to higher GPM from the group’s distribution and manufacturing business.

SEE:YHI International builds a global brand name

During the year, other gains increased 36.8% y-o-y to $7.8 million mainly due to government grants.

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Credit loss allowance on trade receivables increased from $0.9 million in FY2019 to $1.4 million in FY2020 mainly due to specific debtors who are credit impaired and invoices remains unpaid after a year.

Share of profit from an associated company fell 11.2% y-o-y to $2.7 million in FY2020.

Earnings per share (EPS) for the period stood at 6.57 cents on a fully diluted basis.

Cash and cash equivalents as at end-December came in at $84.5 million.

For more stories about where the money flows, click here for our Capital section 

A first and final dividend of 3.30 cents per share has been declared for the FY2020, compared to the 2.22 cents declared in FY2019.

Despite the challenges ahead, the group says it is looking to strengthen its business operations, improve efficiency and productivity and focus on its “3R strategy” namely “Reduce inventory, reduce accounts receivable and reduce operating costs”.

“The group will continue to source for new products, new business opportunities and explore new sale channels to grow our businesses across various market segments regionally,” it says.

Shares in YHI closed 1 cent lower or 2.4% down at 40 cents on March 1.