Xpress Holdings third-quarter profit softens to $1.2m amid economic slowdown

Chinese New Year holidays also hurt.

In a release, SGX Mainboard-listed Xpress Holdings Ltd (Xpress) continued to deliver profitable performances for the past nine months ended 30 April 2013 (“9MFY13”) and in its latest 3QFY13 results. It achieved a net profit of S$2.7 million on a total group revenue of $18.8 million for the nine months ended 30 April 2013. For 3QFY13, the Group registered net earnings of S$0.8 million on revenue of S$6.2 million.

For 9MFY12, the Group’s revenue and net profit were S$31.7 million and S$5.4 million respectively while for 3QFY12, Group revenue and net profit were S$9.8 million and S$1.2 million respectively.

The softer performance of the Group compared to 9MFY12 and 3QFY12 was due to the slowdown in financial print market activities as a result of the current economic slowdown. The Chinese New Year holidays in mid February 2013 also contributed to the decrease as many analysts were on leave during this period. 

However, the Group’s Gross Profit margin, net of deducting changes in inventories of finished goods and work-in-progress, remained relatively stable at 62.5% in 3QFY13 compared to 63.5% in the corresponding quarter last year.

Group Earnings Per Share for the quarter under review was 0.0478 cent compared to 0.0710 cent in 3QFY12. Net Asset Value (NAV) Per Share as at 30 April 2013 was 7.98 cents, compared to 8.9 cents as at 31 July 2012. The EPS and NAV per share for 3QFY13 were diluted by new share placement in December 2012.

The Group continued to generate positive cash from its operations. Net cash from operating activities by the Group for 3QFY13 was S$0.7 million as compared to $1.8 million in the corresponding quarter a year ago.

Group’s cash and cash equivalents as at 30 April 2013 stood at S$10.2 million. Overall costs for the Group in 3QFY13 dipped in line with lower sales for the quarter. In 3QFY13, the cost of raw materials and consumables such as paper, films and plates decreased by 34.4% to S$2.3 million compared to S$3.6 million in 3QFY12. Staff cost was S$0.8 million lower as compared to 3QFY12. Other operating expenses for 3QFY13 were S$1.1 million, 22.5% lower than the S$1.4 million incurred in 3QFY12.