Ms.
First Half of Fiscal Year 2023 Financial Highlights
- Revenue was
$97.8 million for the six months endedJune 30, 2023 , compared to$100.7 million for the same period of last year. - Gross profit was
$4.2 million for the six months endedJune 30, 2023 , compared to$6.7 million for the same period of last year. - Income from operations was
$2.2 million for the six months endedJune 30, 2023 , increased by 79.0% from$1.2 million for the same period of last year. - Net income was
$2.0 million for the six months endedJune 30, 2023 , increased by 66.6% from$1.2 million for the same period of last year. - Basic and diluted earnings per share were
$0.08 for the six months endedJune 30, 2023 , compared to$0.05 for the same period of last year.
First Half of Fiscal Year 2023 Financial Results
Revenue
Total revenues were
For the Six Months Ended | ||||||||||||
2023 | 2022 | |||||||||||
($ thousands) | Revenue | | Cost of Revenue | | Gross Margin | | Revenue | | Cost of Revenue | | Gross Margin | |
Sale of sugar | 49,413 | 49,009 | 0.8% | 81,400 | 75,666 | 7.0% | ||||||
Sale of rice | 10,129 | 7,925 | 21.8% | 17,188 | 16,499 | 4.0% | ||||||
Sale of oil and fat products | 38,019 | 36,393 | 4.3% | 2,112 | 1,867 | 11.6% | ||||||
Sale of others | 203 | 198 | 2.3% | - | - | - | ||||||
Total | 97,764 | 93,525 | 4.3% | 100,700 | 94,032 | 6.6% | ||||||
- Revenue from sales of sugar was
$49.4 million for the six months endedJune 30, 2023 , which decreased by 39.3% from$81.4 million for the same period of last year. This decline can be attributed to various challenges, including issues related to pricing. Specifically, the Company did not secure some tenders in the Indonesian market due to pricing concerns. Additionally, the release of import licenses inVietnam was delayed, affecting our sales in the region. - Revenue from sales of rice was
$10.1 million for the six months endedJune 30, 2023 , which decreased by 41.1% from$17.2 million for the same period of last year. The decline was attributed to a decrease in export license issued from Indian government, which have had an impact on our ability to maintain previous sales levels in the rice market. - Revenue from sales of oil and fat products was
$38.0 million for the six months endedJune 30, 2023 , which increased by 1,700% from$2.1 million for the same period of last year. The increase was attributable to the palm oil prices which have experienced a significant upward trend over the past three years, reaching an all-time high in 2022. In 2023, there has been a price drop, leading to an increase in demand. The combination of favorable pricing dynamics and increased demand has contributed to the significant growth in revenue from oil and fat products, particularly in our African market segment. - Revenue from sales of others was
$0.2 million for the six months endedJune 30, 2023 . The sale of others represents sales of tomato paste, which was random and based on customer requests and orders.
Breakdown of revenue in terms of geographic regions for the six-month periods ended
For the six months ended | |||||||||||||||||||||||||
($ thousands) | 2023 | % | 2022 | % | Amount | Change (%) | |||||||||||||||||||
US$’000 | US$’000 | US$’000 | |||||||||||||||||||||||
$ | 49,211 | 50.3 | $ | 23,361 | 23.2 | 25,850 | 110.7 | ||||||||||||||||||
11,842 | 12.1 | 6,767 | 6.7 | 5,075 | 75.0 | ||||||||||||||||||||
14,056 | 14.4 | 40,758 | 40.5 | (26,702 | ) | (65.5 | ) | ||||||||||||||||||
2,371 | 2.4 | 23,241 | 23.1 | (20,870 | ) | (89.8 | ) | ||||||||||||||||||
Other countries | 20,284 | 20.8 | 6,573 | 6.5 | 13,711 | 208.6 | |||||||||||||||||||
Total revenue | $ | 97,764 | 100.0 | $ | 100,700 | 100.0 | (2,936 | ) | (2.9 | ) | |||||||||||||||
- Revenue from the
Africa market experienced remarkable growth of more than doubling. The Africa’s contribution to total revenue increased to 50.3% for the six months endedJune 30, 2023 , from 23.2% for the same period of last year. - Revenue from
China market demonstrated solid growth, representing a 75.0% growth. - Revenue from
Indonesia market experienced a decline of 65.5%, which can be attributed to challenges in securing tenders, affecting the Company’s ability to generate revenue from this market. - Revenue from the
Vietnam market decreased 89.8%, which primarily due to the delayed release of import licenses. - Revenue from other countries increased by 208.6%, highlighting the Company’s strategic efforts in expanding its business footprint to additional regions, including
Thailand ,Cambodia ,the Philippines ,Taiwan ,South Korea , and other emerging markets.
Cost of Revenue
Cost of revenue was
Gross Profit and Gross Margin
Gross profit was
Gross margin was 4.3% for the six months ended
Operating Expenses
Operating expenses were
- Selling and marketing expenses were
$0.7 million for the six months endedJune 30, 2023 , which decreased by 81.3% from$3.9 million for the same period of last year. The decrease was primarily due to a decrease in sales commissions payable as a result of the decrease in revenue, as well as a decrease in advertising and promotion expenditures. - General and administrative expenses were
$1.3 million for the six months endedJune 30, 2023 , which decreased by 13.3% from$1.5 million for the same period of last year. The decrease was primarily due to a decrease in agency fees, office running costs and professional fees.
Other Income and Interest Expense
Other income was
Interest expense was
Profit before Tax and Income Tax Expense
Profit before tax was
Net Income
Net income was
Basic and diluted earnings per share were
Financial Condition
As of
Net cash provided by operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
On
About
Based in
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the
For more information, please contact:
Investor Relations Department
Email: investors@daviscl.com
Ascent Investor Relations LLC
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
DAVIS COMMODITIES LIMITED AND ITS SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Amount in thousands, except for share and per share data, or otherwise noted) | ||||||||
As of | As of | |||||||
2022 | 2023 | |||||||
US$’000 | US$’000 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 2,540 | 2,509 | ||||||
Accounts receivable, net | 4,656 | 18,495 | ||||||
Prepaid expenses and other current assets, net | 7,001 | 9,156 | ||||||
Deferred offering costs | 1,129 | 1,338 | ||||||
Inventory | 2,176 | 479 | ||||||
Total current assets | 17,502 | 31,977 | ||||||
Property, plant and equipment | 399 | 669 | ||||||
Right-of-use asset | – | 91 | ||||||
Total non-current assets | 399 | 760 | ||||||
TOTAL ASSETS | 17,901 | 32,737 | ||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Bank loans – current | 157 | 167 | ||||||
Lease payable – current | – | 36 | ||||||
Finance lease – current | – | 29 | ||||||
Accounts payable | 5,096 | 18,968 | ||||||
Accruals and other current liabilities | 4,749 | 3,697 | ||||||
Amount due to related parties | – | 114 | ||||||
Income taxes payable | 1,357 | 1,134 | ||||||
Total current liabilities | 11,359 | 24,145 | ||||||
Bank loans – non-current | 528 | 451 | ||||||
Lease payable – non-current | – | 56 | ||||||
Finance lease – non-current | – | 113 | ||||||
Deferred tax liabilities | 1 | 1 | ||||||
Total non-current liabilities | 529 | 621 | ||||||
TOTAL LIABILITIES | 11,888 | 24,766 | ||||||
Commitments and contingencies | – | – | ||||||
Shareholders’ equity | ||||||||
Ordinary shares | * | * | ||||||
Additional paid-in capital | – | – | ||||||
Merger reserve | 1,113 | 1,113 | ||||||
Retained earnings | 4,895 | 6,846 | ||||||
Accumulated other comprehensive income | 5 | 12 | ||||||
Total shareholders’ equity | 6,013 | 7,971 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 17,901 | 32,737 | ||||||
* – Denotes amount less than US$’000.
** – Retrospectively restated for the effect of a 2,325-for-1 share subdivision.
DAVIS COMMODITIES LIMITED AND ITS SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Amount in thousands, except for share and per share data, or otherwise noted) | ||||||||
For the six-month period ended | ||||||||
2022 | 2023 | |||||||
US$’000 | US$’000 | |||||||
Revenues | 100,700 | 97,764 | ||||||
Cost of revenues | (94,032 | ) | (93,525 | ) | ||||
Gross profit | 6,668 | 4,239 | ||||||
Operating expenses: | ||||||||
Selling and marketing expenses | (3,906 | ) | (720 | ) | ||||
General and administrative expenses | (1,536 | ) | (1,324 | ) | ||||
Total operating expenses | (5,442 | ) | (2,044 | ) | ||||
Income from operations | 1,226 | 2,195 | ||||||
Other income/(expense): | ||||||||
Other income | 178 | 155 | ||||||
Interest expense | (15 | ) | (18 | ) | ||||
Total other income | 163 | 137 | ||||||
Income before tax expense | 1,389 | 2,332 | ||||||
Income tax expense | (218 | ) | (381 | ) | ||||
Net income | 1,171 | 1,951 | ||||||
Other comprehensive income | ||||||||
Foreign currency translation loss, net of taxes | 13 | 7 | ||||||
Total comprehensive income | 1,184 | 1,958 | ||||||
Net income per share attributable to ordinary shareholders | ||||||||
Basic and diluted | $ | 0.05 | $ | 0.08 | ||||
Weighted average number of ordinary shares used in computing net income per share | ||||||||
Basic and diluted** | 23,250,000 | 23,250,000 | ||||||
** – Retrospectively restated for the effect of a 2,325-for-1 share subdivision.
DAVIS COMMODITIES LIMITED AND ITS SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands, except for share and per share data, or otherwise noted) | ||||||||
For the six-months period ended | ||||||||
2022 | 2023 | |||||||
US$’000 | US$’000 | |||||||
Net income | 1,171 | 1,951 | ||||||
Adjustments: | ||||||||
Depreciation and amortization | 28 | 30 | ||||||
Unrealized loss on derivative contract at fair value | 8 | 3 | ||||||
Unrealized gain on foreign exchange | (3 | ) | – | |||||
Interest expense | 15 | 15 | ||||||
Interest expense on finance lease | * | |||||||
Interest expense on lease liability | * | * | ||||||
Interest income | (26 | ) | (43 | ) | ||||
1,193 | 1,956 | |||||||
Changes in operating assets: | ||||||||
(Increase)/Decrease in inventories | (193 | ) | 1,698 | |||||
Decrease in margin deposits | 889 | 536 | ||||||
Decrease/(Increase) of accounts and other receivables | 1,836 | (16,523 | ) | |||||
Increase in deferred offering costs | – | (209 | ) | |||||
(Decrease)/Increase in accounts and other payables, and accruals | (3,175 | ) | 12,816 | |||||
(Decrease) in income tax payable | (51 | ) | (224 | ) | ||||
Increase in operating lease liabilities | – | 1 | ||||||
Cash provided by operating activities | 499 | 51 | ||||||
Dividend paid | (3,000 | ) | – | |||||
Interest received | 26 | 43 | ||||||
Purchase of property, plant and equipment | (7 | ) | (299 | ) | ||||
Cash used in investing activities | (2,981 | ) | (256 | ) | ||||
Amount due to related parties | (1 | ) | 114 | |||||
Proceeds from bank borrowings | 578 | – | ||||||
Proceeds from finance lease | – | 144 | ||||||
Repayment of bank borrowings | (60 | ) | (67 | ) | ||||
Interest paid | (15 | ) | (15 | ) | ||||
Principal payment of finance lease | – | (2 | ) | |||||
Principal payment of lease liabilities | (19 | ) | – | |||||
Payment of interest on finance lease | – | * | ||||||
Payment of interest on lease liabilities | * | – | ||||||
Cash provided by financing activities | 483 | 174 | ||||||
Net change in cash and cash equivalents | (1,999 | ) | (31 | ) | ||||
Cash and cash equivalents as of beginning of the period | 7,087 | 2,540 | ||||||
Cash and cash equivalents as of the end of the period | 5,088 | 2,509 | ||||||
Supplementary Cash Flows Information | ||||||||
Cash paid for taxes | (269 | ) | (601 | ) | ||||
Operating lease asset obtained in exchange for operating lease obligations | – | 150 | ||||||
* Denotes amount less than
Source:
2023 GlobeNewswire, Inc., source