Sitra Holdings (International) Ltd: 1H2025 Financial Analysis
Sitra Holdings (International) Ltd, a Singapore-listed company engaged in the import/export of wood-based and outdoor lifestyle products and property development, has released its condensed interim financial statements for the six months ended 30 June 2025 (1H2025). This analysis reviews the company’s latest financial results, compares performance to the prior year, and highlights key trends and developments relevant to investors.
Key Financial Metrics and Performance Table
| Metric |
1H2025 |
2H2024 |
1H2024 |
YoY Change (1H2025 vs 1H2024) |
QoQ Change (1H2025 vs 2H2024) |
| Revenue |
S\$7,670,282 |
– |
S\$6,742,523 |
+13.8% |
– |
| Gross Profit |
S\$677,900 |
– |
S\$583,873 |
+16.1% |
– |
| Gross Margin (%) |
8.8% |
– |
8.7% |
+0.1pp |
– |
| Operating Loss |
(S\$581,291) |
– |
(S\$849,689) |
-31.6% |
– |
| Net Loss |
(S\$598,668) |
– |
(S\$830,524) |
-27.9% |
– |
| EPS (Basic / Diluted) |
(0.04) cents |
– |
(0.06) cents |
+33.3% |
– |
| Dividend per Share |
Nil |
– |
Nil |
– |
– |
| Net Asset Value per Share |
S\$0.48 |
– |
S\$0.52 (as at Dec 2024) |
-7.7% |
– |
Profit and Loss Review
- Revenue: Up 13.8% YoY to S\$7.67 million, driven primarily by stronger sales to the European market (+26% YoY) and a sharp increase in outdoor lifestyle furniture sales (+513% YoY). The Australia/NZ market saw a slight decline (-2.5% YoY).
- Gross Profit: Improved by 16.1% to S\$677,900, with gross margins steady at 8.8% due to prudent procurement strategies.
- Operating Expenses: Notable reductions in administrative expenses (-17.2%) and selling/marketing expenses (-9.4%), reflecting cost discipline. However, other losses rose 71% primarily due to higher foreign currency translation losses.
- Net Loss: The group narrowed its net loss to S\$598,668 from S\$830,524 a year ago, a 27.9% improvement. Basic and diluted loss per share improved to (0.04) cents from (0.06) cents YoY.
- Income Tax: A tax expense of S\$17,377 was recognized in 1H2025, reversing a tax credit of S\$19,165 in 1H2024.
Cash Flow and Balance Sheet Highlights
- Operating Cash Flow: Net cash used in operations increased to S\$333,084 (vs. S\$66,296 used in 1H2024), mainly due to operating costs and losses from subsidiaries.
- Cash & Equivalents: Ended 1H2025 at S\$119,988, down from S\$236,403 at the start of the period, reflecting negative operating and investing cash flows, partially offset by advances from a controlling shareholder.
- Borrowings: Remained low at S\$91,217, almost entirely comprising lease liabilities and a small bank overdraft.
- Net Asset Value: Declined to S\$0.48 per share as at 30 June 2025 from S\$0.52 as at 31 December 2024, due to ongoing losses.
Segmental and Geographic Performance
- Product Segments: Wood-based products remain the core (94.7% of revenue), but outdoor lifestyle furniture and other products saw significant YoY growth from a small base.
- Geography: Europe’s contribution rose to 57.3% of total revenue; Asia/Others doubled but remains a small portion.
Exceptional Items and Notable Developments
- Foreign Currency Losses: Other losses increased significantly due to foreign currency translation effects.
- Asset Reclassification: Certain properties were reclassified from PPE to investment properties after being leased to third parties. These assets were recently valued using the market comparison and depreciated replacement cost methods.
- Related Party Payables: The company has a significant outstanding liability (S\$1.76 million) for the acquisition of the remaining 46% equity interest in Mapur Rocky Resort Limited, payable in stages up to 2031. The terms were amended to extend the payment schedule.
- Advances from Shareholder: An increase in advances from a controlling shareholder provided some liquidity support.
- No Dividends: No interim or prior-year dividends were declared, as the company lacks accumulated profits under Singapore law.
Macroeconomic and Industry Commentary
- Market Conditions: Export sales benefitted from higher demand and stabilized freight rates, prompting customers to restock.
- Risks: Management remains cautious about global sentiment, especially potential market disruptions from US tariff policies. While Sitra has no direct US exposure, changes in global supply chains could affect its key markets.
Corporate Governance and Other Disclosures
- No share buybacks, placements, or share capital changes occurred during the period.
- No material related-party transactions above S\$100,000 were reported.
- No significant legal, tax, or regulatory events were disclosed.
Conclusion: Outlook and Assessment
Sitra Holdings delivered stronger top-line growth and narrowed its losses in 1H2025, with improvements in both gross profit and operating margins. Cost controls were effective, and the company’s core business benefitted from revived demand in the European market. However, persistent net losses, weak cash flow, declining net asset value, and reliance on shareholder advances point to lingering financial pressures. The absence of dividends and a cautious management outlook reflect these ongoing challenges.
Overall, the financial performance and outlook remain weak to neutral. While operational improvements are evident, the company must address its structural profitability and cash flow issues to deliver sustainable value to shareholders. The external risk environment, especially global trade tensions, adds further uncertainty to the near-term outlook.
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