The Hour Glass FY2025: Revenue up 3% to S$1.16 billion, profit down 14% amid higher costs and softer luxury demand
Summary:
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Financial highlights:
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Revenue rose 3% year-on-year to S$1.16 billion.
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Profit after tax declined 14% to S$136.1 million, mainly due to rising costs, margin pressure, and a S$6.5 million negative fair value adjustment on investment properties.
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Net asset value grew to S$926.7 million (S$1.43 per share).
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Inventory turnover steady at 2.4 times, with S$328.3 million in inventory and S$178.7 million in cash.
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Loans and borrowings reduced to S$54.8 million.
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Dividends:
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Total dividend of 6.0 cents per share for FY2025 (2.0 cents interim and 4.0 cents final), amounting to S$38.9 million.
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Market environment:
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The global luxury and watch market softened. Swiss watch exports fell 2.8%, led by a 23% decline in China and Greater China.
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Primary watchmakers raised prices, but many reduced production budgets for 2025 as inventories rose.
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Prices in the secondary luxury watch market continued to decline.
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Operational and strategic developments:
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Streamlined retail network in Singapore and Hong Kong, focusing on larger flagship and mono-brand boutiques.
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Completed AUD90 million acquisition of four Rolex boutiques in Australia, expanding to 15 boutiques across Oceania.
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Converted Ginza store in Japan into a standalone Patek Philippe boutique.
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Brand and culture initiatives:
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Launched IAMWATCH in Singapore, an event to foster connections among watch collectors, brands, and artisans.
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Governance:
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Board remains diverse in expertise and age, with ongoing commitment to high governance standards.
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Appointed Mr. Chow Wai San as independent director on 1 August 2024.
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Outlook:
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Chairman Dr. Henry Tay highlighted global uncertainties but reaffirmed focus on long-term value creation.
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The company remains cautiously optimistic and committed to investing in the luxury watch segment with operational discipline.
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