Sitra Holdings (International) Ltd – FY2025 Financial Review
Sitra Holdings (International) Ltd, a Singapore-listed company engaged in the import/export and distribution of wood-based products and property development, has released its unaudited financial results for the year ended 31 December 2025. Below, we analyze key financial metrics, trends, and material developments disclosed in the report.
Key Financial Metrics & Performance Table
| Metric |
2H2025 |
1H2025 |
2H2024 |
YoY Change (2H) |
QoQ Change (2H vs 1H) |
| Revenue (S\$) |
7,706,298 |
7,670,282 |
5,948,828 |
+30% |
+0.5% |
| Gross Profit (S\$) |
454,092 |
677,900 |
607,359 |
-25% |
-33% |
| Net Loss (S\$) |
(700,072) |
(598,669) |
(345,980) |
+103% |
+17% |
| EPS (Loss per share, S\$ cents) |
(0.04) |
(0.04) |
(0.02) |
-100% |
0% |
| Dividend per Share (S\$) |
0.00 |
0.00 |
0.00 |
No Change |
No Change |
Historical Performance Trends
- Revenue Growth: FY2025 revenue rose 21% YoY to S\$15.38 million, driven by higher demand in Australia/New Zealand (+10%) and Europe (+30%).
- Profitability: Despite revenue growth, FY2025 net loss widened to S\$1.30 million (+11% YoY), and gross profit declined 5% YoY. Gross margins continued to contract (7.36% in FY2025 vs. 9.39% in FY2024), reflecting severe raw material cost pressures.
- Cash Position: Cash and bank balances improved to S\$0.33 million (up from S\$0.24 million at end-FY2024), primarily due to a director advance, not from operating profit.
- Net Asset Value: Net asset value per share fell to S\$0.43 (from S\$0.52), reflecting accumulated losses and negative comprehensive income.
Exceptional Items and Notable Developments
- Other Gains/Losses: FY2025 saw a swing from net gains of S\$346,872 in FY2024 to net losses of S\$67,372, mainly due to the absence of a prior-year gain on remeasurement of a financial liability.
- Expense Controls: Administrative and selling expenses fell YoY, reflecting some cost discipline, but these improvements were not enough to offset margin pressures.
- Asset Revaluation: The company booked a revaluation gain of S\$560,351 on property, plant, and equipment, lower than the S\$682,638 gain in the previous year.
- No Dividend: No dividend was declared due to continuing accumulated losses.
- Related-party Transactions: There were no material related-party transactions or significant asset sales, placements, or share buybacks in the period.
Chairman’s Statement
“The competitive landscape in our primary markets of Europe, Australia, and New Zealand remains uncertain. Geopolitical tensions, an increase in material prices due to tight supply, and weak demand have impacted our margin across all market segments.
We anticipate that these headwinds will persist. Ongoing uncertainties and increasing prices of materials are expected to continue to influence the purchasing decisions of our customers and our operations. We will continue to navigate these challenges, exploring opportunities to diversify our revenue streams and optimizing our operations to ensure long-term sustainability.”
The tone is notably cautious and somewhat negative, with management highlighting persistent cost pressures, weak demand, and no near-term resolution to margin compression.
Balance Sheet & Cash Flow Review
- Assets: Total assets decreased to S\$11.26 million, mainly due to lower inventories and currency translation losses.
- Liabilities: Total liabilities increased to S\$4.38 million, with new advances from directors and revaluation of financial liabilities.
- Cash Flows: Operating cash flow was negative (S\$122,503 used), with the deficit covered by a S\$381,000 director advance. Capital expenditures were minimal.
Dividends
- No dividend was proposed for FY2025, same as FY2024.
- The company explicitly states it cannot pay dividends due to accumulated losses.
Events & Risks Impacting Outlook
- Macroeconomic Headwinds: Management expects ongoing margin and demand pressure due to geopolitical and supply chain issues.
- No New Business Segments: Property development in Bintan remains inactive; no revenue was recorded from this business.
- No Major Legal, Regulatory, or Tax Changes: None disclosed.
- No Share Buybacks or Dilution: Capital structure is unchanged.
Conclusion and Investment Recommendations
Overall Assessment: Sitra Holdings’ financial performance in FY2025 remains weak, despite respectable revenue growth. Persistent and rising losses, ongoing margin compression from high material costs, negative operating cash flow, and a downbeat outlook from management all point to significant challenges ahead. The company’s inability to pay dividends and lack of clear catalysts for margin recovery further dampen the investment case.
- If you currently hold Sitra Holdings shares: Consider reducing or exiting your position, particularly if you require capital preservation or dividends. The company’s outlook remains challenging, and recovery prospects appear limited without an improvement in cost structure or a new growth engine.
- If you do not currently hold Sitra Holdings shares: There is little reason to initiate a position. Wait for evidence of a sustainable turnaround, especially a return to profitability, margin recovery, or successful execution of new business initiatives.
Disclaimer: This analysis is based solely on information disclosed in the company’s FY2025 report. It does not constitute investment advice. Please consult your own financial advisor before making any investment decisions.
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