New Toyo International Holdings Ltd: FY2025 Financial Results Analysis

New Toyo International Holdings Ltd, a SGX-listed investment holding company engaged primarily in specialty packaging materials, printed cartons, trading, and food & beverage, released its condensed interim financial statements for the six months and full year ended 31 December 2025. Below, we present a structured analysis of the Group’s key financial metrics, recent performance trends, dividend announcements, and outlook for investors.

Key Financial Metrics & Performance Table

*2025 Final dividend yet to be announced at the time of report.

Full-Year and YoY Financial Performance

Performance Highlights and Trends

• Revenue: Both half-year and full-year revenues declined YoY, mainly due to weaker performances in the Specialty Papers and Trading segments, and negative foreign exchange effects. The decline was partially offset by stronger demand in Printed Cartons & Labels (notably in Indonesia, Vietnam, and the Middle East) and growing Food & Beverage contributions.
• Profitability: Operating and net profit margins contracted significantly YoY, with net profit attributable to owners down 55.2% for FY2025. EPS mirrored this trend, falling sharply to 0.95 cents from 2.13 cents a year ago.
• Margins: Gross profit margin for FY2025 slipped to 10.3% from 10.7% in FY2024. Distribution expenses decreased due to lower freight costs, but administrative and other operating expenses rose due to higher professional fees, CSR donations, and increased depreciation charges.
• Cash Flow & Balance Sheet: Net cash flow from operations improved in 2H 2025 due to working capital changes, while cash used in investing activities decreased thanks to lower capex. Net asset value per share declined by nearly 6% YoY.
• Dividends: The Group declared a total dividend of 1.40 cents per share for FY2025, down from 1.90 cents in FY2024, reflecting the drop in earnings.

Exceptional Items and Corporate Actions

• Impairment Reversals: The Group recorded a reversal of impairment losses on PPE and right-of-use assets in Dubai (SGD 1.38m in 2H 2025 vs SGD 2.46m in 2H 2024). The lower reversal compared to last year contributed to the drop in other income.
• CSR and One-Off Expenses: There was a notable non-recurring donation to a registered charity for the company’s 50th anniversary, impacting administrative expenses.
• Treasury Shares: No new share buybacks in 2025; 716,800 treasury shares (0.16% of issued shares) remain.
• Related Party Transactions: The Group continues to report significant transactions with entities related to its controlling shareholder, including sales of raw materials and F&B supplies, equipment, and leasing of office space.

Dividends

• FY2025: Total of 1.40 cents per share (Interim: 0.50 cents; Final: 0.90 cents).
• FY2024: Total of 1.90 cents per share (Interim: 0.90 cents; Final: 1.00 cents).
• This reduction is consistent with the weaker earnings profile and reflects prudent capital management.

Outlook & Chairman’s Statement

The Group anticipates the operating environment to remain difficult due to current geopolitical uncertainties, cost pressures and evolving market conditions. In addition, changing customer requirements, regulatory developments and competitive dynamics will continue to reshape the business landscape.
The Group will maintain a sharp focus on strengthening operational resilience and improving efficiency across its businesses. Key priorities include optimizing production capacity, reinforcing cost discipline and improving cash flow management, while maintaining prudent capital allocation. The Group will continue to invest in innovation and sustainability initiatives to meet customers’ evolving requirements and strengthen long-term competitiveness.

Tone: The statement is cautious and realistic, emphasizing ongoing challenges and the Group’s intention to focus on resilience, efficiency, and sustainable competitiveness.

Conclusion & Investment Recommendation

Overall Assessment: The Group’s financial performance in FY2025 was weak, with clear declines in revenue, profit, margins, EPS, and dividend payout. The company is navigating a tough operating environment marked by geopolitical, currency, and cost headwinds, and has not signaled an imminent turnaround. Management is focused on efficiency and resilience, but the outlook is uncertain and the recent financial trajectory is negative.

• If you currently hold the stock: Consider reviewing your position. Unless you have a high risk tolerance or unique insight into a company turnaround, you may wish to reduce exposure or hold only as a small part of a diversified portfolio. The declining profits and dividends suggest better risk-adjusted returns may be available elsewhere, though the company’s strong balance sheet and cash flows offer some support.
• If you do not currently hold the stock: There is little reason to initiate a position at this time. Wait for evidence of a sustained turnaround in earnings or a clear inflection in demand and margins. Monitor for further cost discipline, successful innovation, or signs of improvement in the operating environment.

Disclaimer: This analysis is based solely on the company’s reported financials and public disclosures. It does not constitute investment advice. Please consult your financial advisor and consider your own risk profile before making investment decisions.

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