MAINBOARD-LISTED food and beverage (F&B) group Yeo Hiap Seng : Y03 0% posted a net profit of S$1.2 million for the half year ended Jun 30 on Friday (Aug 12), reversing a loss of S$1.2 million for the same period a year earlier.

Revenue rose 7 per cent to S$181.2 million for the same period year-on-year on the back of higher growth in Malaysia, Indonesia and Cambodia. This was offset by weaker demand in China, which was impacted by the economic slowdown and Covid-19 measures implemented there.

Earnings per share for the period stood at S$0.002, up from a loss per share of S$0.0021 a year ago. No dividend was declared for the half-year period.

Notably, the group’s gross profit margin declined by 1.1 percentage points to 30.8 per cent due to higher raw and packaging material costs.

The group also said that it had incurred a one-off restructuring charge of S$1.3 million in the first half of this year, although it is expected to realise certain manpower savings after the exercise.

Furthermore, the group recognised a S$1.5 million write-back of impairment on trade receivables owed to it by its former distributors in Malaysia.

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Still, the group cited operating cost inflation, supply chain uncertainty and the impact of Covid-19 in China as headwinds to its operations, which could be exacerbated by an increasingly challenging macroeconomic environment if geopolitical tensions deteriorate.

It added that it will continue to focus on driving higher margins within its core F&B business, net price increases and cost reduction.

Yeo Hiap Seng shares climbed 1.2 per cent, or S$0.01 to close at S$0.835 on Friday before the results were released.