Nanofilm’s revenue dips 3.8% YoY to $237.4m in FY22

The company attributed the decline to four factors.

SGX-listed Nanofilm Technologies International Limited (Nanofilm) saw a 3.8% YoY decline in its revenue for the financial year 2022 (FY22).

In FY22, Nanofilm reported revenue of $237.4m.

With the decrease in revenue, Nanofilm’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), profit after tax (PAT), and PAT attributable to equity holders (PATMI) for FY22 also declined.

EBITDA, PAT, and PATM decreased 15.9% YoY to $80.5m, 30.8% YoY to $43.3m, and 29.6% YoY to $43.8m, respectively. 

Nanofilm attributed the decline in its revenue and PATMI to four factors:

1. Challenging operating environment resulting from macro headwinds, supply chain disruptions, and customers’ capital investment slowdown;
2. Increased operating expenses arising mainly from increased manpower expense due to higher headcount, as well as higher depreciation expense due to capital investments made to position Nanofilm for future growth. And certain costs, considered investments for future growth, could not be reduced in tandem with the fall in revenues;
3. Operational disruptions faced by a key FATP (final assembly, test & pack) supplier to a key customer of the Group in the fourth quarter of 2022 due to Covid-19 restrictions which negatively impacted the Group’s supply for a key product of the key customer;
4. China’s reopening in December 2022 which resulted in a spike of infections that caused disruptions to the Group’s operations; and

Given the latest figures, the company proposed a final dividend of $0.011, subject to shareholders’ approval at the upcoming Annual General Meeting. 

With the proposed final dividend, the total dividend for FY2022 is $0.022, which is approximately 33% of the net profit attributable to equity holders for FY2022.