Back 03 Jul 2025

The Hour Glass FY2025: Revenue up 3% to S$1.16 billion, profit down 14% amid higher costs and softer luxury demand

Link: https://links.sgx.com/1.0.0/corporate-announcements/4OVBTVDMML1FYN2G/788d3d3f801a83474dbe0ffb18a5015b744a3e1a9847e7726ae7d4578b5d2f22


Summary:

  • Financial highlights:

    • Revenue rose 3% year-on-year to S$1.16 billion.

    • 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.

    • Net asset value grew to S$926.7 million (S$1.43 per share).

    • Inventory turnover steady at 2.4 times, with S$328.3 million in inventory and S$178.7 million in cash.

    • Loans and borrowings reduced to S$54.8 million.

  • Dividends:

    • 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.

  • Market environment:

    • The global luxury and watch market softened. Swiss watch exports fell 2.8%, led by a 23% decline in China and Greater China.

    • Primary watchmakers raised prices, but many reduced production budgets for 2025 as inventories rose.

    • Prices in the secondary luxury watch market continued to decline.

  • Operational and strategic developments:

    • Streamlined retail network in Singapore and Hong Kong, focusing on larger flagship and mono-brand boutiques.

    • Completed AUD90 million acquisition of four Rolex boutiques in Australia, expanding to 15 boutiques across Oceania.

    • Converted Ginza store in Japan into a standalone Patek Philippe boutique.

  • Brand and culture initiatives:

    • Launched IAMWATCH in Singapore, an event to foster connections among watch collectors, brands, and artisans.

  • Governance:

    • Board remains diverse in expertise and age, with ongoing commitment to high governance standards.

    • Appointed Mr. Chow Wai San as independent director on 1 August 2024.

  • Outlook:

    • Chairman Dr. Henry Tay highlighted global uncertainties but reaffirmed focus on long-term value creation.

    • The company remains cautiously optimistic and committed to investing in the luxury watch segment with operational discipline.