Singapore's Avarga half-year net profit jumps 556% on absence of prior-year Canadian withholding tax

Avarga

08/08/2026 02:11

Overview
Singapore industrial group's net profit for half-year jumped 556% yr/yr to S$21.7 mln
Revenue for six months ended June 2026 fell 9% yr/yr to S$719.0 mln
Company attributed net profit primarily to a withholding tax expense of S$18.6 million recognised in 1H2025

Outlook
Company did not provide specific guidance or outlook commentary in the interim financial statements

Result Drivers
PRIOR-YEAR TAX BASE EFFECT - The 556% profit jump was driven overwhelmingly by the absence of a one-off S$18.6 million Canadian withholding tax booked in 1H2025
RECEIVABLES BUILD - Trade receivables increased to S$190.2 million as at 30 June 2026 vs. S$108.8 million as at 31 December 2025, primarily due to selling of larger quantities of products by Taiga during the peak seasons
MARGIN OVER VOLUME - The decrease in revenue of S$68.2 million was primarily attributable to lower average pricing and lower sales volume

Company press release: ID:nSN2QnHVY

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Net Income
 
S$21.70 mln
 

Analyst Coverage
The stock recently traded at 129 times the next 12-month earnings vs. a P/E of 129 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)