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Latest Quarterly Performance – 2 Companies Delivered Mixed Results

We’ve come almost to the end of the earnings season.

As is common with every earnings season, there will be some companies and real estate investment trusts (REITs) posting growth, some posting mixed numbers, and some experiencing declines.

So, which are the businesses that have recently posted mixed results? Here are two of them:

Hour Glass Ltd (SGX: AGS) is the first on the list of mixed bags.

It is in the business of retailing luxury watches and has a network of over 40 stores in Singapore, Malaysia, Thailand, Japan, Hong Kong, and Australia.

Financially, revenue was up by 11% year-on-year to S$165.9 million. Yet, profit attributable to shareholders was down by 15% to year-on-year to S$6.9 million. Consequently, earnings per share (EPS) saw a 22.4% decline from 1.16 cents in FY2017’s first-quarter to 0.99 cents in the reporting quarter. The company also ended the quarter with $112.2 million in cash and cash equivalent and $52.2 million in debt.

As for its outlook, this is what the company had to say:

“The global watch sector continues to remain challenging. Barring any unforeseen circumstances, the Group expects to be profitable for the financial year.”

Old Chang Kee Ltd (SGX: 5ML) is the next company that has reported mixed performance recently.

As a quick introduction, Old Chang Kee has been around since 1956, growing from a single stall outside Rex Cinema to 89 outlets today. Old Chang Kee may be best known for its signature Curry’O Puff, a popular Singapore snack.

Revenue for the quarter was up 10.7% year-on-year whereas net profit attributable came in lower at S$0.67 million, down 25.8% year-on-year. Consequently, the company’s diluted EPS fell from 0.74 cents in last quarter to 0.55 cents this quarter.

Revenue grew as a result of new outlets opened, coupled with higher revenue from existing outlets. Yet, higher rental, labour and raw material resulted in a lower net profit.

As for the outlook, this is what the company had to say:

“The Group expects operating lease expenses (rental) and labour and raw material costs to remain high in the next reporting period and the next 12 months, and believes that the labour market will continue to remain tight.

The Group will be integrating its factory in Iskandar Malaysia and its expanded factory facilities in Singapore at 2 and 4 Woodlands Terrace in the coming months. These will provide the Group with a platform to expand its product range and increase its production efficiency, and grow its business both locally and regionally.”

For more information about the latest result, click here for the article written by my colleague, Chin Hui Leong.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.