Yeo Hiap Seng Limited 1H 2025 Results: Revenue Drops 10.1%, Net Profit Halved, No Interim Dividend Declared

Yeo Hiap Seng Limited: 1H 2025 Financial Review

Yeo Hiap Seng Limited (“Yeo’s”), a leading Singapore-listed F&B and property group, released its unaudited condensed interim financial statements for the six months ended 30 June 2025. The results point to a challenging operating environment, with notable declines in core business revenue and profitability, partially offset by non-operating gains. Below, we analyze the key metrics, business drivers, and outlook based strictly on the company’s disclosures.

Key Financial Metrics at a Glance

Metric	1H 2025	2H 2024 (QoQ Proxy)	1H 2024	YoY Change	QoQ Change
Revenue	\$148.6M	\$165.3M*	\$165.3M	-10.1%	-10.1%*
Gross Profit	\$46.7M	\$54.1M*	\$54.1M	-13.7%	-13.7%*
Net Profit	\$1.6M	\$3.2M*	\$3.2M	-50.9%	-50.9%*
EPS (Basic/Diluted, cents)	0.25	0.52*	0.52	-51.9%	-51.9%*
Dividend per Share (Interim)	None	None	None	–	–
Final Dividend Paid (Prior FY)	2 cents	2 cents	2 cents	0%	0%

*Latest available data. The company does not provide quarterly breakdowns—comparisons are 1H vs. 1H as per company reporting.

Historical Performance Trends

Revenue: Group revenue declined 10.1% YoY, attributable to lower F&B sales (down 7.6%) and the absence of \$5.6M in Oatly co-packing revenue, which was present in 1H 2024 but not in 1H 2025.
Gross Margin: Margin compressed from 32.7% to 31.4%, reflecting weaker sales mix and subdued demand, especially around key festive periods.
Net Profit: Net profit after tax was halved, falling to \$1.6M. This was despite non-operating gains, reflecting weak underlying operating performance.
Other Gains/Losses: The company recognized significant non-operating gains from investment property revaluations and asset sales, partially offset by currency translation losses.

Business Drivers and Exceptional Items

Oatly Asset Sale: In March 2025, Yeo’s completed the disposal of assets held for sale (related to the Oatly co-packing arrangement) for \$17.9M, with a multi-component compensation structure from Oatly amounting to \$32M. There was no impairment loss recorded on this asset disposal.
Investment Properties: Fair value gains of \$6.0M were recognized in 1H 2025, reflecting an internal assessment supported by market indicators. All investment properties are valued at Level 3, with no indication of delays or missed revaluations.
Fair Value Losses on Financial Assets: The group recognized \$16.2M in fair value losses on financial assets at FVOCI, primarily due to declines in quoted equity holdings, including its stake in Vitasoy International Holdings.
Currency Effects: Currency translation differences resulted in a \$9.9M loss in other comprehensive income, reversing a \$3.0M gain in the prior year.

Dividends

No interim dividend was declared for 1H 2025, consistent with the same period last year. The company does not have a standing practice of declaring interim dividends.
A final dividend of 2 cents per share (tax exempt) was paid during the period, unchanged from the prior year. The dividend was satisfied via a combination of scrip and cash.

Balance Sheet and Cash Flow Developments

Current Assets: Fell by \$29.6M, mainly due to lower cash (placement of fixed deposits >3 months), lower inventories post-festive season, and derecognition of assets sold to Oatly.
Non-Current Assets: Decreased by \$19.9M, driven by fair value losses on financial assets and depreciation, partly offset by upward revaluation of investment properties.
Cash Flows: Net cash from operating activities was \$5.6M, a sharp drop from \$18.5M in 1H 2024. Investing activities saw a \$1.0M outflow, while financing (dividends, lease payments) led to a \$12.3M outflow. Net cash and cash equivalents declined by \$7.6M over the period.

Segmental Performance

Food & Beverage: Remains the core business, but reported a segment loss of \$7.4M for 1H 2025 (vs. \$2.5M loss in 1H 2024). The absence of Oatly revenue and subdued festival demand were major drivers.
Others (Investment/Property): Segment profit rose to \$10.2M (up from \$7.5M), largely due to property revaluations and asset sales.

Exceptional Earnings and Expenses

Asset Sale to Oatly: The completion of this transaction contributed to non-operating gains and a material increase in other receivables.
Fair Value Losses: Substantial unrealized losses on financial assets hit other comprehensive income, partially masking the company’s underlying operating weakness.

Related-Party Transactions

Related party transactions were minor and at arm’s length, with no unusual or material fund flows disclosed.

Macroeconomic and Industry Environment

The company highlighted ongoing global uncertainty, cautious consumer sentiment, and subdued demand in its key markets as ongoing risks. Management will focus on higher-margin products, operational efficiency, innovation, and cost control. The strong balance sheet will be leveraged for long-term strategic opportunities.

Outlook and Guidance

No specific earnings guidance was provided. Management commentary carries a neutral-to-cautious tone, referencing external macro headwinds and a continued emphasis on operational discipline and selective growth.

Conclusion: Performance and Outlook Assessment

Yeo Hiap Seng’s 1H 2025 results reflect a weak operating performance, with significant YoY declines in revenue, profit, and EPS, primarily due to softer consumer demand, loss of Oatly co-packing revenue, and margin compression. Non-operating gains from property revaluation and asset sales provided some support, but substantial fair value losses on financial assets and negative currency effects weighed on comprehensive income. The company remains conservatively capitalized and is not distributing interim dividends. The outlook appears neutral to weak until core F&B business momentum recovers or new growth drivers emerge.