Noel Gifts International Ltd 1H FY2026 Results: Revenue Up 37%, No Interim Dividend Declared

Noel Gifts International Ltd: 1H FY2026 Financial Results Analysis

Noel Gifts International Ltd released its unaudited condensed interim financial statements for the first half ended 31 December 2025. The company, listed on the Singapore Exchange, is principally involved in the marketing of gifts, property investment, and development. This article presents a structured analysis of the key financial metrics, performance trends, and outlook based strictly on the contents of the report.

Key Financial Metrics & Performance Comparison

Metric	1H FY2026	2H FY2025	1H FY2025	YoY Change	QoQ Change
Revenue	\$7,974,000	N/A	\$5,820,000	+37.0%	N/A
Gross Profit	\$3,993,000	N/A	\$3,025,000	+32.0%	N/A
Net Loss	(\$51,000)	N/A	(\$1,083,000)	-95.3%	N/A
EPS (cents)	(0.05)	N/A	(1.06)	-95.3%	N/A
Dividend	Nil	Nil	(12,297,000)	N/A	N/A

Summary of Key Metrics:

Revenue: Up 37% YoY, driven by strong sales including a \$3.1 million contribution from the SG60 project.
Gross Profit: Increased 32% YoY, reflecting improved sales performance.
Net Loss: Reduced substantially to \$51,000 from a loss of \$1,083,000 in the prior year period.
EPS: Improved from a loss of 1.06 cents to a loss of 0.05 cents.
Dividends: No interim dividend declared for the current reporting period, compared to \$12.3 million paid in 1H FY2025.

Historical Performance Trends

Revenue and profitability have shown marked improvement over the prior year. The company transitioned from a significant net loss in 1H FY2025 to a near break-even in 1H FY2026. This recovery is attributed primarily to enhanced sales efforts, disciplined expense management, and a substantial write-back of trade receivables.

Exceptional Earnings and Expenses

Other operating income declined sharply by \$578,000 to \$229,000, mainly due to lower interest rates and reduced deposit balances. There was a notable write-back of receivables (\$214,000), reflecting successful collection efforts. Distribution and administrative expenses were reduced, further supporting profitability.

Asset Revaluation and Development Properties

Development properties increased to \$44.6 million, with capitalised borrowing costs of \$398,000, and remain secured against bank borrowings. No asset revaluation delays or errors were reported.

Cash Flow & Balance Sheet

Cash and cash equivalents decreased slightly by \$0.2 million to \$12.8 million, primarily due to net cash used in financing activities (interest payments and lease repayments). Current assets rose by \$0.7 million, mainly from higher inventories and project activity. Trade payables also increased, reflecting project-related purchases.

Dividends and Shareholder Returns

No interim dividend was declared for the period, citing prudency. This marks a shift from the previous year, when significant dividends were paid. The company’s approach reflects caution amid ongoing market challenges.

Events and Outlook

The operating environment remains challenging, with increased competition and cautious consumer spending. Noel Gifts is focusing on technology and customer service to maintain resilience. Property development is progressing, with consultant coordination underway ahead of builder appointment.

Corporate Actions

There were no changes in share capital, buybacks, or dilution during the period. No share placements, fundraising, or asset sales were reported. The company has not obtained an interested person transaction mandate and did not engage in related-party transactions above \$100,000.

Chairman’s Statement

“The Board of Directors hereby confirmed that, to the best of its knowledge, nothing has come to its attention which may render the unaudited half financial results of the Group to be false or misleading in any material aspect.”

The tone of the Chairman’s statement is neutral, focusing on compliance and assurance rather than optimism or pessimism.

Conclusion & Investment Recommendations

Overall Assessment:
The financial performance of Noel Gifts International Ltd has improved, transitioning from a significant loss to near break-even, with robust revenue growth and disciplined cost management. However, the company is exercising caution, reflected in its decision not to declare an interim dividend, and notes the continued challenges in its operating environment.

If you are currently holding Noel Gifts stock:
Investors may consider maintaining their position, given the company’s improved performance and disciplined management. However, continued monitoring is advised due to the cautious outlook, competitive pressures, and lack of dividend payout.
If you are not currently holding Noel Gifts stock:
Investors may wait for further evidence of sustainable profitability and dividend resumption before initiating a position. While the turnaround is positive, the competitive landscape and prudent management stance suggest a neutral wait-and-see approach.

Disclaimer:
This analysis and recommendation are based strictly on the contents of the company’s reported financials and do not constitute investment advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions.