Abundance International Limited Issues Profit Warning for FY2025

Abundance International Limited, a Singapore-listed company, has issued a profit warning regarding its financial results for the year ended 31 December 2025 (FY2025). The company expects to report a significant net loss, mainly attributed to softer global economic conditions and an unexpected decline in the average selling prices of certain chemical products.

Key Highlights from the Report

• Expected Net Loss: The Group anticipates a net loss for FY2025, with losses exacerbated in the second half of the year due to further deterioration in market conditions.
• Revenue Decline: Lower average selling prices and reduced customer demand led to a notable drop in revenue.
• Gross Losses on Inventory: To manage inventory and cashflow, a portion of inventory was sold at a gross loss in the latter half of the year.
• Weaker Global Economic Conditions: The downturn resulted in oversupply and pressure on product pricing.
• Financial Results Release: The final audited results are expected on or before 28 February 2026.

Financial Metrics and Performance Comparison

As the document is a profit warning, specific financial metrics such as revenue, earnings per share (EPS), or dividends are not disclosed for either the current or previous periods. However, the report provides qualitative insights into the factors driving performance for FY2025.

Historical Performance Trends

While specific historical metrics are not provided, the report makes clear that FY2025 will see a marked deterioration compared to the previous year, driven predominantly by external market forces and company-specific inventory actions.

Exceptional Earnings or Expenses

• The Group reported selling a portion of inventory at a gross loss to manage cashflow and inventory levels, which is a notable exceptional expense for the year.

Macroeconomic Environment Impact

• Global economic softness, oversupply, and reduced demand have directly impacted the company’s chemical products segment.

Forecasted or Expected Events That Could Impact Performance

• The company cautions that full-year results will be weak and advises shareholders and potential investors to exercise caution in their dealings.
• Final audited results will be released by 28 February 2026, which may provide more clarity on the extent of losses and future outlook.

Chairman’s Statement

“Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company. Persons who are in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors, accountants, or other professional advisers.”

Tone: The statement is cautious and advises prudence, reflecting management’s concern over the company’s financial performance and outlook.

Conclusion and Investor Recommendations

Overall Performance & Outlook: Based on the disclosed information, Abundance International Limited faces significant challenges in FY2025, mainly from market-driven price declines and inventory losses. The outlook appears weak, with no immediate catalysts for recovery mentioned in the report.

Recommendations

• If you are currently holding the stock: Consider reviewing your position and risk tolerance. The company is facing substantial headwinds, and further losses cannot be ruled out. You may wish to reduce exposure or wait for the full financial results before making a final decision.
• If you are not currently holding the stock: Exercise caution and wait for the release of the full financial results before considering any investment. The current outlook is unfavorable, and there is substantial uncertainty ahead.

Disclaimer: This analysis is based solely on the information disclosed in the company’s profit warning. It does not constitute investment advice. Investors should consult their own professional advisers and consider their individual financial circumstances before making any investment decisions.

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