PREMIUM CATERING (HOLDINGS) LIMITED ANNOUNCES YEAR END FINANCIAL RESULTS
SINGAPORE, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Premium Catering (Holdings) Limited ("PC" or the "Company") (NASDAQ:PC), a food caterer supplying prepared meals to foreign workers in Singapore as well as operating food stalls and providing buffet catering services, today announced its operating results for the fiscal year ended June 30, 2024, with revenue of S$5,163,909 and a net loss of S$1,466,690.
The following table shows our statement of loss data for the financial years ended June 30, 2023 and 2024. For further information regarding the results of our operations, see our financial statements appearing in our Annual Report filed with the United States Securities and Exchange Commission.
| Financial Years ended June 30, | ||||||||||||||||
| 2023 | 2024 | Change | ||||||||||||||
| S$ | S$ | S$ | ||||||||||||||
| Revenues, net | 5,213,810 | 5,163,909 | (49,901 | ) | (1.0 | )% | ||||||||||
| Cost of revenues | (4,066,566 | ) | (4,330,233 | ) | (263,667 | ) | 6.5 | % | ||||||||
| Gross profit | 1,147,244 | 833,676 | (313,568 | ) | (27.3 | )% | ||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | (1,516,758 | ) | (2,280,498 | ) | (763,740 | ) | 50.4 | % | ||||||||
| Selling and distribution | (27,719 | ) | (39,884 | ) | (12,165 | ) | 43.9 | % | ||||||||
| Total operating expenses | (1,544,477 | ) | (2,320,382 | ) | (775,905 | ) | 50.2 | % | ||||||||
| Loss from operations | (397,233 | ) | (1,486,706 | ) | (1,089,473 | ) | 274.3 | % | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (134,430 | ) | (165,151 | ) | (30,721 | ) | 22.9 | % | ||||||||
| Government grants | 22,270 | 29,305 | 7,035 | 31.6 | % | |||||||||||
| Other income | 67,648 | 157,675 | 90,027 | 133.1 | % | |||||||||||
| Total other (expenses) / income, net | (44,512 | ) | 21,829 | 66,341 | (149.0 | )% | ||||||||||
| Loss before income taxes | (441,745 | ) | (1,464,877 | ) | (1,023,132 | ) | 231.6 | % | ||||||||
| Income tax expense | - | (1,813 | ) | (1,813 | ) | (100.0 | )% | |||||||||
| Net loss | (441,745 | ) | (1,466,690 | ) | (1,024,945 | ) | 232.0 | % | ||||||||
Revenue
Overall, our total revenue decreased marginally by approximately S$0.05 million or 1.0% to approximately S$5.16 million for the year ended June 30, 2024, from approximately S$5.21 million in June 30, 2023. The decrease was mainly due to the decrease in revenue generated from supply of budget prepared meals of approximately S$0.2 million, while partially offset by the increase in revenue generated from new business operation of Food Stall and buffet catering services totaling approximately S$0.1 million.
The decrease in revenue generated from the supply of budget prepared meals of approximately S$0.2 million or 4.1% to approximately S$4.8 million for the year ended June 30, 2024 from approximately S$5.0 million in June 30, 2023 was mainly due to the cessation of supplying budget prepared meals to customers with lower margins. In conjunction with this, we set up the Food Stall in a canteen of a dormitory (which has been subsequently closed with plans for re-location), and also started offering buffet catering services for private functions as well as corporate and community events when the Singapore government lifted most of the social gathering restrictions imposed as a result of the COVID-19 pandemic.
Cost of Revenue
During the financial years ended June 30, 2023, and 2024, our cost of revenue was mainly comprised of raw materials costs, direct wages costs and packing material cost. For the years ended June 30, 2023 and 2024, our cost of revenue amounted to approximately S$4.1 million and S$4.3 million, respectively.
Gross profit and gross profit margin
Our overall gross profit margins were approximately 22.0 % and 16.1% for the year ended June 30, 2023 and 2024, respectively. Our total gross profit decrease during the year ended June 30, 2024 mainly due to the increase in the prices of raw materials.
General and administrative expenses
Our general administrative expenses amounted to approximately S$1.5 million and S$2.3 million for the financial years ended June 30, 2023 and 2024, respectively. General administration expense forms part of the fixed running cost of our Company. In 2023, our Company expanded its production facilities and moved into newly-leased premises in December 2022. The newly-leased premises are a three-story building with a gross floor area of approximately 26,905 square feet. The increase in the operating lease expense of leasing the Central Kitchen and office has resulted in an increase in general administrative expenses by S$0.4 million for the year ended June 30, 2024.
Staff costs were mainly salaries, Central Provident Fund contributions and bonuses to our employees, primarily our corporate, executive, finance and other administrative and procurement/logistic employees. There was an increase in staff cost from the year ended June 30, 2023 to the year ended June 30, 2024, mainly due to turnover of administrative headcount and revision of key management's salaries.
Operating lease expenses were mainly the operating lease expenses of our Central Kitchen and office in Chin Bee Avenue. Since December 2022, we moved from the two-unit rented factory workshop at Food Xchange @ Admiralty with a total built up area of 4,500 sq. ft. to 21 Chin Bee Avenue, which includes the Central Kitchen, our head office and ancillary areas with a total built up area of 26,905 sq. feet. This has resulted in the increase in operating lease expenses for the year ended June 30, 2024, by approximately S$0.4 million or 59.4%.
Depreciation expenses were charged on our property and equipment which included (i) machine and equipment; (ii) furniture and fittings; (iii) office equipment; (iv) motor vehicles and (v) renovation expenses. For the year ended December 31, 2024, the decrease in depreciation is mainly due to the annual depreciation expense.
Handling charges relate to fees to dormitory operators for the logistical dissemination of packed meals to foreign workers during the period of movement control under the Circuit Breaker Measures due the COVID-19 pandemic. For the year ended June 30, 2024, the decrease is mainly due to the end of this movement control.
For the year ended June 30, 2023, write-off of property and equipment is mainly the write-off of renovation costs previously capitalized for our former Central Kitchen at Food Xchange @ Admiralty after the relocation of Central Kitchen to Chin Bee Avenue.
Legal and professional fees mainly represented legal and consultancy and business advisory fees which were ad hoc and mainly incurred for year ended June 30, 2024, and hence resulted in increase in such expenses for the year ended June 30, 2024.
Other expenses were mainly comprised of rental of machinery, rental of central kitchen and cleaning fee.
Net loss for the Year
As a result of the foregoing, our net loss amounted to approximately S$0.4 million and S$1.5 million for the years ended June 30, 2023, and 2024, respectively.
About Premium Catering (Holdings) Limited
Premium Catering (Holdings) Limited is a certified Halal food caterer specializing in Indian, Bangladesh and Chinese cuisine and has over 11 years of experience in the catering services industry in Singapore. The Group primarily supplies budget prepared meals to foreign construction workers in Singapore. In addition, the Group operates food stalls and provides buffet catering services for private functions as well as ancillary delivery services. Since 2019, the Group has introduced smart incubators where prepared meals are placed in them for collection by the customer. The smart incubators are the Company's custom-made compartmentalized, heated and insulated food vending lockers which are used to deliver budget prepared meals to customers in a secured, hygienic, contactless manner at a pre-set temperature.
Safe Harbor Statement
To the extent that this press release may contain forward-looking statements that reflect our current expectations and views of future events, there are known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.
Contact:
Sarah Loh
The Chief Financial Officer
Telephone +65-6355 9488
[email protected]
