The earnings season is now more or less over.
As is common with every earnings season, there will be some real companies posting growth, some posting mixed numbers, and some experiencing declines.
So, which are the businesses that have recently shown growth? Let’s look at two of them.
1. No Signboard Holdings Ltd (SGX: 1G6) reported its first quarter earnings for the financial year ending 30 September 2018 (FY2018) in mid-February.
As a quick introduction, No Signboard, which was listed in November 2017, is a food and beverage outfit that mainly operates seafood restaurants. Other than operating restaurants, it has a beer business and a ready meal business.
In its latest earnings release, No Signboard’s revenue was up 2.9% year-on-year to S$4.1 million. At the same time, net profit jumped 56.3% year-on-year to S$1.4 million. The higher net profit came from the recognition of a one-off profit from an acquisition, and was offset partially by IPO expenses. No Signboard had cash and bank balances of S$26.1 million and $1.5 million borrowings as of 31 December 2017
For its outlook, company added:
“The Group continue to see a stable revenue stream for its premium seafood restaurants. The Group is continuing to work on the development of the new casual dining concept restaurants as well as the expansion of the beer business, including the establishment of its own brewery.
The Group has started a trial phase by offering its ready meals through vending machines, and is reviewing the sales performance and results of the trial phase. The Group will also consider other distribution channels when such opportunities arise.”
2. Jardine Cycle & Carriage Ltd (SGX: C07) or Jardine C&C reported its full year for 2017 in early March.
As a quick background, Jardine C&C is a conglomerate with three main business segments, namely Astra, direct motor interests, and other strategic interests.
For 2017, Jardine C&C’s revenue increased 12% year-on-year to US$ 17.7 billion. Underlying earnings per share (EPS) was also up by 16% year-on-year to US$1.99. The positive performance was driven by its Indonesian conglomerate, Astra, but was offset by a weak performance from its direct motor business.
As of 31 December 2017, the company’s net debt stood at US$4.2 billion, up from US$ 2.8 billion recorded at the end of 2016. The conglomerate recommended a final dividend per share of US$0.68. Including the interim dividend of US$0.18, Jardine C&C’s total dividend per share for 2017 will be US$0.86, up 16% year-on-year.
Jardine C&C’s Chairman, Ben Keswick, also provided the 2018 outlook:
“After a satisfactory overall result in 2017, Astra should continue to benefit in 2018 from improving economic conditions and stable commodity prices, although the competition seen in the car market is expected to intensify. The Group’s Direct Motor Interests will continue to face challenges, while its Other Strategic Interests are expected to produce growth.”
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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.