Dezign Format Group Limited (SGX:UZF) Announces FY2025 Results: Resilient Performance, Strategic Expansion, and Dividend Declaration

Key Financial Highlights

• Adjusted Net Profit: S\$2.2 million for FY2025, despite IPO-related expenses and strategic investments.
• Revenue: S\$33.1 million, a marginal decline of 1.0% from S\$33.4 million in FY2024.
• Gross Profit: S\$11.8 million with a margin of 35.5%, reduced from 38.8% in FY2024 due to upfront expansion costs.
• Exceptional Items: S\$1.1 million in one-off IPO expenses impacting reported net profit.
• Final Dividend: Board recommends a tax-exempt (one-tier) final dividend of 0.25 Singapore cents per share.

Segment Performance

• Events, Exhibitions & Décor Segment: Core revenue contributor at S\$28.2 million, down 2.4% due to fewer projects but continued high-profile engagements (luxury jewelry, automotive showcases, Singapore Grand Prix hospitality suites).
• Commercial & Retail Fit-Out Segment: Robust growth with revenue up 9.1% to S\$4.8 million, driven by expansion in new projects.
• Immersive Location-Based Entertainment (LBE): Early-stage growth, contributing S\$0.1 million. Notably, VR attraction “The Element Code 305” launched in Kuala Lumpur and Ho Chi Minh City, laying groundwork for scalable, IP-driven revenue streams.

Total projects: Declined from 607 in FY2024 to 552 in FY2025. However, average revenue per project increased from S\$55,000 to S\$59,800, indicating improved project quality or size.

Strategic Developments and Outlook

• IPO and Expansion: FY2025 was a transitional year, marked by IPO completion and substantial upfront expenditures to future-proof the business.
• New Malaysian Production Facility: Operations commenced in Johor, Malaysia. Facility aims to combat inflation, optimise production, enhance supply chain integration, and improve long-term cost-to-sales ratios.
• Regional Expansion: Sales offices opened in Thailand, Indonesia, and Vietnam. Participation in Thailand MICE X-Change and MOUs with Hustle & Bustle (IMBA Global theatre projects) signal aggressive market penetration.
• Growth Pillars: Continued focus on scaling bespoke experiential offerings, especially in the high-growth LBE sector.

Management Commentary

Mr. Mike Chong, Chairman and CEO, stated:

“FY2025 was a pivotal, transitional year for Dezign Format. While our headline numbers reflect the upfront costs of our IPO and strategic expansion, our Adjusted Net Profit of S\$2.2 million reveals the underlying resilience of our core business. We have made necessary, front-loaded investments to future-proof the Group. With our new Malaysian production facility coming online to drive cost efficiencies, and our rapid expansion into high-growth markets like Vietnam and Thailand, we have established a robust foundation. We remain optimistic about the path ahead and are focused on scaling our bespoke, experiential offerings to deliver sustained value to all our stakeholders.”

Investor Information and Potential Share Price Drivers

• The announcement of a dividend signals management confidence in the company’s cash flow and future prospects, which could be price sensitive for shareholders.
• Strategic investments and new facility in Malaysia are expected to drive future margin improvements and scalability, potentially enhancing shareholder value.
• Regional expansion into Thailand, Indonesia, and Vietnam positions the company to capture robust growth in the Southeast Asian MICE and LBE sectors.
• One-off IPO costs impacted FY2025 net profit, but adjusted figures show core business strength, an important consideration for investors assessing long-term value.
• Increasing average project value and decreased project volume may indicate a shift toward higher-margin, larger-scale engagements.
• Immersive LBE segment is an emerging growth pillar, with recent launches and IP-driven strategies laying foundation for future revenue streams.

About Dezign Format Group Limited

Dezign Format Group Limited is a leading provider of events, exhibitions, and décor services to various industries, including the MICE sector. Its businesses are grouped into Events, Exhibitions & Décor Services, Commercial & Retail Fit-Out Services, and Immersive Location-Based Entertainment and Experiences. The Group delivers end-to-end design, fabrication, installation, and project management for events, exhibitions, festive decorations, museums, galleries, and brand activation. It also offers interior fit-out solutions for commercial properties and develops immersive LBE projects, both proprietary and third-party IP, with potential for licensing and leasing.

Disclaimer

The information contained in this article is for informational purposes only and does not constitute an offer, invitation, or solicitation to buy or sell any securities, nor should it be relied upon as the basis for any investment decision. The content has been compiled from official company reports and is intended for investors seeking detailed insights. Please consult your financial advisor before making any investment decisions.

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