Operating and Financial Review (c) Other income Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2024 H1 2024 H2 2024 vs H1 2024 H2 2023 H2 2024 vs H2 2023 S$’000 S$’000 S$’000 % S$’000 S$’000 % Change in fair value of financial assets at FVTPL - forward foreign exchange contracts 45 7 38 > 100.0 - 45 NM Gain on disposal of property, plant and equipment 598 26 572 > 100.0 3 595 > 100.0 Grant income 40 3 37 > 100.0 2 38 > 100.0 Insurance claims 4,432 5,241 (809) (15.4) 3,156 1,276 40.4 Interest income 77 47 30 63.8 43 34 78.0 Trade receivables recovered 80 64 16 26.1 137 (57) (41.5) H2 2024 vs H1 2024 The decrease in other income was mainly due to lower insurance compensation claims of S$0.8 million partially offset by higher gain on disposal of property, plant and equipment of S$0.6 million. H2 2024 vs H2 2023 The increase in other income was mainly due to higher insurance compensation claims of S$1.3 million and higher gain on disposal of property, plant and equipment of S$0.6 million. FY 2024 vs FY 2023 Similarly, the increase in other income of S$7.0 million was mainly due to the same reasons as noted above in H2 2024 visà-vis H2 2023. The increase was partly offset by lower trade receivables recovered of S$0.2 million. FY 2024 FY 2023 Variance Fav/(Unfav) S$’000 S$’000 S$’000 % Change in fair value of financial assets at FVTPL - forward foreign exchange contracts 45 - 45 NM Gain on disposal of property, plant and equipment 624 10 614 > 100.0 Grant income 43 45 (2) (4.2) Insurance claims 9,673 3,156 6,517 > 100.0 Interest income 123 85 38 44.7 Trade receivables recovered 144 368 (224) (60.8) NM = Not Meaningful After adjusting for the impact of the fire incident, gross profit margin for H2 2024 would be 25.0% as compared to 24.0% in H1 2024 and 24.2% in H2 2023. Gross profit for H2 2024 would have increased by S$0.3 million or 1.7% and S$0.8 million or 5.3% over H1 2024 and H2 2023. FY 2024 vs FY 2023 Gross profit margin for FY 2024 improved to 24.2% as compared to 18.3% in FY 2023 mainly due to the same reasons as stated above. Coupled with higher sales, gross profit increased year-on-year by S$8.7 million or 38.8% to S$31.2 million. After adjusting for the impact of the fire incident, gross profit margin and gross profit would be 24.5% and S$31.5 million respectively and the increase in gross profit over FY 2023 would have been S$3.0 million or 10.7%. 32 ANNUAL REPORT 2024
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