TAIPEI, Taiwan, Aug. 26, 2024 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ:APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the six months ended June 30, 2024. Unless otherwise indicated, all data are reported in U.S. Dollars at the exchange rate prevailing on the date of the event or result reported.
First Six Months 2024 Financial Results (Ended June 30, 2024), and 2023 comparative results
First 6 Months 2024
First 6 Months 2023
CHANGE
Revenues
$
214.3 million
$
193.5 million
10.8%
Operating Profit
$
1.2 million
$
-2.8 million
144.7%
Net Income
$
-0.5 million
$
0.02 million
(3500.0)%
EPS1
$
-0.02
$
0.001
(2100.0)%
Revenues for the six months ended June 30, 2024 were $214.3 million, a increase of 10.8% from $193.5 million for the six months ended June 30, 2023. The increase was attributable to revenue increases across the Company's Thailand, North Asia and Rest of World ("ROW") regions. Net revenue in the Company's Thailand region increased by 14.0%, mainly driven by higher sales of power cables and fabrication services, fueled by economic expansion and government efforts in infrastructure development, public utilities, and the implementation of renewable energy, particularly solar power. Revenues in the Company's North Asia region increased by 12.5% for several reasons, including a rise in copper prices, growth in the number of new customers, and the commencement of rectangular wire production. Although the sales volume of rectangular wires was not large, their prices were relatively higher. Revenues in the Company's ROW region increased by 7.5%, the primary driver of this growth was the amplified sales of power cables, spurred by the increased demand in 2024 in Singapore. The Company's North Asia region includes China, Hong Kong and Taiwan; the Thailand region consists of operations and sales within Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.
Operating profit for the six months ended June 30, 2024 was $1.2 million, a increase of 144.7% from operating profit of $-2.8 million for the six months ended June 30, 2023. Operating profit margin increased from a loss of (1.44)% in 2023 to a profit of 0.58% in 2024. In the Thailand region, the operating profit margin increased from (7.87)% in 2023 to 1.41% in 2024. This positive shift was largely due to enhanced profitability in the public sector and the reversal of the inventory valuation provision. In the North Asia region, the operating profit margin decreased from 7.08% in 2023 to (1.52)% in 2024, this downturn was primarily due to the reversal of previously provided provisions for employee benefits and pensions in 2023, along with a rise in research and development expenditures in 2024.The ROW region's operating profit margin decreased from 2.11% in 2023 to 1.66% in 2024 primarily due to an increased allowance for onerous contracts in Singapore.
Selling, general and administrative expenses for the six months ended June 30, 2024 were $12.5 million, compared to $11.0 million reported for the six months ended June 30, 2023. Net profit attributable to APWC equity shareholders of the parent was $-0.5 million for the six months ended June 30, 2024, compared to a net profit of $0.02 million for the six months ended June 30, 2023. The weighted average number of shares issued and outstanding was 20.62 million and 20.62 million for the six months ended June 30, 2024 and 2023, respectively.
Financial Condition
APWC reported $33.7 million in cash and cash equivalents as of June 30, 2024, compared to cash and cash equivalents of $39.0 million as of June 30, 2023.
Current assets totaled $282.5 million as of June 30, 2024, compared to $295.0 million as of December 31, 2023. Working capital was $154.6 million as of June 30, 2024. Short-term bank loans were $53.665 million at June 30, 2024, a decrease of $72,000 from $53.737 million at December 31, 2023. The Company had $6.2 million in long-term debt outstanding at June 30, 2024, compared to no long-term debt outstanding as of December 31, 2023. Shareholder's equity attributable to APWC was $149.9 million as of June 30, 2024, compared to $157.1 million as of December 31, 2023.
APWC reported cash used in operating activities of $10.8 million during the six months ended June 30, 2024, compared to cash used in operating activities in the amount of $3.5 million in the corresponding period in 2023. The cash outflow from operating activities was primarily due to slower accounts receivable collection. The Company reported $0.8 million in cash outflows from investing activities during the six months ended June 30, 2024, compared to $2.8 million in cash outflows in the same period of 2023. The decrease in cash used in investing activities in the six months of 2024 was primarily attributable to the decrease in purchases of property, plant and equipment in 2024. APWC reported $9.1 million in cash inflows from financing activities during the first six months of 2024, compared to $7.4 million in cash outflows from financing activities in the same period of 2023. The increase in cash inflows was due to an increase in borrowing in 2024.
We encourage shareholders to visit the Company's website for further information (www.apwcc.com). Information on the Company's website or any other website does not constitute a portion of this release.
About Asia Pacific Wire & Cable Corporation Limited
Asia Pacific Wire & Cable Corporation Limited is a holding company incorporated in Bermuda with principal executive offices in Taiwan that operates its business through operating subsidiaries. Through its subsidiaries, the Company is principally engaged in the manufacture and distribution of enameled wire, power cable, and telecommunications products in Thailand, Singapore, Australia, the People's Republic of China, Hong Kong and certain other markets in the Asia Pacific region. The Company also engages in the distribution of certain wire and cable products manufactured by its controlling shareholder, Pacific Electric Wire & Cable Co., Ltd., and certain third parties. The Company also provides project engineering services in the supply, delivery and installation of power cable. The Company's major customers include appliance component manufacturers, electrical contracting firms, state owned entities, and wire and cable dealers and factories.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the Company, its business, and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes", "anticipates", "expects", "estimates", "intends", "plans" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as believed, anticipated, expected, estimated, intended or planned. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
Contact:Investor Relations Contact:Pacific Holdings GroupAttn: Paul Weber2901 Dallas Parkway, Suite 360Plano, TX 75093Phone: (469) 797-7191Email:
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENTS(Non-Audited)(Amounts in thousands of US Dollars, except share data)
For the six months
ended June 30,
2024
2023
US$'000
US$'000
Revenue
214,330
193,478
Cost of sales
(200,848
)
(185,501
)
Gross profit
13,482
7,977
Other operating income
981
243
Selling, general and administrative expenses
(12,471
)
(10,990
)
Other operating expenses
—
(9
)
Operating profit
1,241
(2,779
)
Finance costs
(1,165
)
(1,194
)
Finance income
97
87
Share of loss of associates
(1
)
(1
)
Exchange loss
149
(66
)
Other income
243
571
