The company expects higher costs but also higher revenue ahead
Oceanus Group has reported higher sales of $85.7 million for 1HFY2022, up 63% over the year earlier six months.
However, because of higher financing and other operating costs, it went into the red with a loss of $818,000, versus earnings of $5 million reported for 1HFY2021.
The growth in Oceanus’ revenue was driven largely from its distribution of foodstuffs in China, such as frozen meat.
Gross profit for the same 1HFY2022 was $6 million, nearly double $3.3 million from 1HFY2021.
Finance costs increased from $504,000 in 1HFY2021 to $2 million for 1HFY2022.
The company incurred higher costs too from a new head office and additional headcount to support expansion.
Oceanus’ net asset as at June 30 was $63 million, up from $33.3 million as at Dec 31 2021.
Total liabilities, on the other hand, dropped from $110.8 million to $89.7 million in the same period, due to a placement of 1.27 billion new shares worth $29.2 million to settle debt.
The company says that over the past couple of years, it has held back its various expansion plans, in view of the ongoing pandemic and its associated uncertainties and restrictions.
“However, with the world now moving into a nascent post-pandemic era, industries are already preparing themselves for the re-opening of global markets,” says Oceanus in its earnings commentary.
The company says it is putting in place the various key planks to kick off the “big leap” of growth, which will incur higher operating costs.
“On the other hand, the group also looks forward to driving Oceanus to the next level of growth, evident in the recent growth in revenue in 1H 2022, increasing 63% to $85.7 million – again the highest level of turnover for the group on record at halftime,” the company says.
Oceanus shares closed Aug 12 at 1.17 cents, down 5.56%.