PSC reports higher earnings despite lower revenue; to pay special dividend

The Edge Singapore
1-min read

PSC is boosting production capacity in Malaysia

PSC Corp has reported earnings of $21.8 million for FY2023, up 11.8% over the preeding year, even though revenue was down 12.8% to $482.1 million.

The company was able to fetch better margins for its packaging business, thanks to lower material costs.

PSC Corp plans to pay a final dividend of 1 cent, plus a special dividend of 0.5 cents. This will bring the total payout for FY2023 to 1.8 cents, up 44% over FY2022.

Executive chairman Sam Goi says the special dividend is to help mark the company's 50th anniversary and to show its appreciation to shareholders.

In a separate announcement, PSC says it is buying a piece of freehold vacant land of some 1.2ha in Pontian, Johor, for RM3.3 million ($964,695).

PSC plans to build a factory to boost its production capacity by up to 7 times.

The company plans to make products such as tofu, noodles and other foodstuffs sold under PSC's "Fortune" brand at this new facility.

"This new factory will expand Fortune’s production capacity to enable the brand to penetrate deeper into the vast Malaysian market and grow our market share through our existing FMCG
network and channels," says Goi.

He warns that the economic condition in China continues to be tough and inflationary pressure in Singapore weighs on consumer spending.

Therefore, PSC will focus on cost control measures while building on its strong brand equity and customer engagement as it continues to explore opportunities to drive growth.

PSC Corp shares closed at 32 cents on Feb 28, down 3.08%.

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