* Samurai 2K Aerosol Records All-Round Improvement in 1H2024 Financials despite Challenging Business Environment
SINGAPORE - Samurai 2K Aerosol Limited (the "Company" and together with its subsidiaries, the "Group") (SGX: Y8E), a manufacturer of automotive aerosol paints and aerosol solution specialist, announced its financial results for the six months ended 30 September 2023 ("1H2024"). Despite a challenging business environment dominated by international trade tensions, global geopolitics and general slowdown in global economies, the Group recorded all-round improvement in its financials for 1H2024 as compared with same period last year ("1H2023").
Revenue slightly decreased by approximately 5.01 % from RM41.83 million in 1H2023 to RM39.74 million in 1H2024. The decrease in revenue was mainly due to lower demand from the Malaysia market. However, for the same period, net income attributable to equity holders increased significantly from RM0.47 million to RM2.78 million. Consequently, EPS increased from 0.14 RM Sen to 0.83 RM Sen.
Indonesia remains Samurai's largest market with 45% of total revenue or RM17.87 million for 1H2024 and Malaysia is the second largest market with 26% of total revenue or RM10.40 million for 1H2024.
Cost of sales decreased by RM5.51 million or 20.05% from RM27.47 million in 1H2023 to RM21.96 million in 1H2024. The decrease was mainly due to the decrease in raw material and packing material costs. As a result, Gross Profit Margin was higher at 44.7% in 1H2024 compared to 34.3% in 1H2023.
Overall expenses increased marginally by 0.7% from RM 15.22 million in 1H2023 to RM15.33 million for 1H2024. Administrative expenses in 1H2024 increased by RM0.98 million or 12.97%, mainly due to additional headcount which is in line with business expansion generally in new business development O2O (offline to online). This is offset by marketing and distribution expenses decreasing approximately by RM1.15 million or 15.86%, from RM7.24 million in 1H2023 to RM6.09 million in 1H2024 as well as a decrease in offline marketing activities. Finance expenses increased approximately by RM0.28 million or 61.42% from RM0.45 million in 1H2023 to RM0.73 million in 1H2024 mainly due to increase in drawdown of term loan for upgrading the new office building.
Financial Position
The Group's financial position remains robust with net assets of RM77.44 million as at 30 September 2023, compared to RM75.15 million as at 31 March 2023. As at 30 September 2023, net asset value per ordinary share is 23.15 RM Sen vs 22.46 RM Sen as at 31 March 2023. The Group has a total debt of RM 34.65 million and a cash balance of RM29.22 million as at 30 September 2023.
Going Forward
The Group expects the operating environment to be challenging over the next 12 months in the light of current international trade tensions, global geopolitics, and a slowdown in global economic growth. The Group will continue to intensify its marketing and business development efforts, and exercise prudent financial policies and cost control.
The main thrust of its business strategy is the development of new products using innovative proprietary technologies as a differentiating factor for the enhancing of the Samurai brand name. This will go hand in hand with offline to online digital marketing taking advantage of its global reach, scalability, and the reaping of economies of scale.
Meanwhile, the Group will continue to expand sales to emerging markets in Asia where demographics and income growth should provide some resilience in demand for aerosol paints and coating products.
One of the new products the Group is focusing on will be Tintatek-an innovative color mixing, creation and matching product which is expected to be launched by the beginning of calendar year 2024.
The Group continues to see growing demand for its products in the emerging markets of Asia amidst favorable its macroeconomic factors of demographics, urbanization, and higher consumer disposable income. It will therefore continue to expand its business footprint in these markets.
This media release is to be read in conjunction with the Company's results announcement for 1H2024 posted on the SGX website on 14 November 2023.
Reference:
https://links.sgx.com/1.0.0/corporate-announcements/HBF3C8Y905OT1IKC/795efad7fc45d816baca2c94eda8c162de701e2b6f7d5167a40d8f626a67a8a4
Issued by Samurai 2K Aerosol Limited
This press release has been reviewed by UOB Kay Hian Private Limited (the "Sponsor").
This press release has not been examined or approved by the Singapore Exchange Securities Trading Limited ("SGX-ST") and the SGX-ST assumes no responsibility for the contents of this press release, including the correctness of any of the statements or opinions made or reports contained in this press release.
The contact person for the Sponsor is Mr Lance Tan, Senior Vice President, who can be contacted at 8 Anthony Road #01-01, Singapore 229957, telephone (65) 6590 6881
About Samurai 2K Aerosol Limited(SGX: Y8E)
Samurai 2K Aerosol Ltd ("SAMURAI®") has been listed on the Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST") since January 2017. SAMURAI® is a fully integrated aerosol specialist that focuses on the repainting business as well as aftermarket for the automotive refinishing and refurbishing industry.
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SAMURAI 2K AEROSOL LIMITED 
