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UG Healthcare's 2HFY2022 earnings down by 75.6% to $15.5 mil, proposes special dividend

Khairani Afifi Noordin
Khairani Afifi Noordin8/25/2022 06:05 PM GMT+08  • 2 min read
UG Healthcare's 2HFY2022 earnings down by 75.6% to $15.5 mil, proposes special dividend
UG Healthcare has proposed a special dividend of 32 cents per share and a final dividend of 32 cents per share.
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UG Healthcare Corp has reported earnings of $15.5 million for the 2HFY2022 ended June, 75.6% lower than the net profit of $63.8 million in the same period the year before.

FY2022 earnings stood at $36.8 million, down 69% y-o-y from FY2021's $118.7 million.

Earnings per share (EPS) for 2HFY2022 stood at 2.48 cents, compared to 10.37 cents for 2HFY2021.

EPS for FY2022 stood at 5.93 cents, compared to 19.42 cents for FY2021.

Revenue fell 35.6% y-o-y to $115.3 million from $179 million for 2HFY2021, while FY2022 revenue fell 31.3% y-o-y to $232.5 million.

Although demand remains strong for hand protection for safety and hygiene purposes, the company says the rapid downward adjustments in average selling price (ASP) of disposable examination gloves to pre-Covid levels from the increase in global supply resulted in its customers’ preference to hold lower inventory.

See also: CapitaLand China Trust reports 2HFY2022 DPU of 3.40 cents, 24.4% lower y-o-y

This underscored UG Healthcare’s weaker financial performance for FY2022 as more countries progress from the pandemic to endemic phase.

The company reported gross profit of $39.8 million for 2HFY2022, 58.9% down y-o-y from $97 million for 2HFY2021.

FY2022 gross profit decreased by 57% y-o-y from $196.2 million to $84.4 million. This was in tandem with the lower revenue from lower ASP across all product segments, partially offset by lower raw material prices despite an increase in production volume.

See also: Digital Core REIT's FY2022 DPU 4.8% below forecast

Correspondingly, gross profit margin declined from 58% in FY2021 to 36.3% in FY2022.

UG Healthcare’s net asset value increased from $190.6 million as at June 30, 2021 to $228.9 million as at June 30 this year. Similarly, net asset value increased from 30.93 cents as at June 30, 2021 to 36.69 cents as at June 30 this year.

The group’s net cash position stood at approximately $83.8 million as at June 30.

As a token of appreciation to shareholders, UG Healthcare has proposed a special dividend of 0.32 cents per share and a final dividend of 0.32 cents per share. The total dividend of 0.64 cents for FY2022 is a slight increase from FY2021’s 0.611 cents.

UG Healthcare executive director and finance director Lee Jun Yih says the company will build its downstream distribution capabilities in its pursuit to expand its product portfolio and correspondingly broaden its earnings base which it believes will give an edge to achieving sustainable growth in the long term.

Shares in UG Healthcare closed at an unchanged 21.5 cents on Aug 25.

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