SINGAPORE, February 19, 2021 – Yeo Hiap Seng Ltd (Yeo’s), one of the region’s leading food
and beverage companies, today reported a net loss of $10.0 million for its financial year ended
31 December 2020 (FY2020) as COVID-19 disruptions affected sales in key markets.
The bottom line was also affected by absence of one-off gains on asset disposals and fair value
gains on financial assets totalling $14.8 million, fair value gains on investment properties of
$2.3 million and higher impairment of trade receivables. The Group recognised COVID-19
relief of $4.50 million during the year. Net loss of $3.3 million for the second half was lower
than net loss of $6.7 million recorded in the first six months of the year.
Group revenue for the full-year decreased 10.3% to $321.9 million while gross profit declined
17.9% to $92.3 million. Sales slowed down due to channel shifts, softer consumer spending as
well as lower agency sales. To improve overall portfolio margin, the Group has been focusing
on its core Yeo’s food and beverage sales business and rationalising its lower margin agency
products. Core Yeo’s food and beverage sales for the second half was in line with second half
of FY2019. For FY2020, core Yeo’s food and beverage sales declined at a lower rate than the
overall Group revenue.
Future Outlook
Commenting on the outlook, Yeo’s Group Chief Executive Officer Samuel Koh said: “While
COVID-19 will continue to pose uncertainty and pressure on our business, we are encouraged
to see traction with the strategies which we have put in place. In FY2020, we doubled our ecommerce sales, achieved double-digit sales growth in our mainland China business for the second consecutive year and delivered double-digit sales growth in our food business. In addition, we have been improving our market shares in our key markets and our new products launches such as Chrysanthemum Tea variants have been well received.”
Mr Koh said Yeo’s will focus on growing its core Yeo’s food and beverage portfolio through
adapting commercial strategies, new product innovation, strengthening the agility of its supply
chain and driving productivity.
For FY2020, Yeo’s generated cash of $8.3 million from operating activities and has a strong
balance sheet with cash and cash equivalents of $264.2 million as of 31 December 2020. The
decrease of cash and cash equivalents of $31.6 million from 31 December 2019 was mainly
due to dividends paid to shareholders and investments in property, plant and equipment.
Yeo’s has no bank borrowings or debt securities, and its liabilities comprise mainly trade and
other payables and lease liabilities.
The Board of Directors has recommended a final dividend of $0.02 per ordinary share for
FY2020, with shareholders given the option to receive the dividend in scrip.