Eumundi Group's 1HFY24 Financial Performance

Eumundi Group Limited (ASX: $EBG) has reported a profit after tax of $1.599 million for the half-year ended 31 December 2023. Excluding non-cash fair value revaluations and adjustments, net profit after tax was up 9.8% to $1.621 million for the half-year, compared with $1.476 million in the previous corresponding period. The total comprehensive income of $2.096 million included a $0.497 million gain net of tax on the fair value revaluations of the Ashmore Tavern and the Aspley Shopping Centre land and buildings.

Executive Commentary on Financial Results

Revenue from hotel operations of $13.890 million in 1HFY24 was up 3%, with food, beverage, and gaming at the Ashmore Tavern benefitting from the kitchen and bathroom replacement completed last year. Retail liquor sales softened during the period with a lower average spend driven by cost-of-living pressures. The Board remains cautious about the potential impact of tightening financial conditions and market competition on the Group's retail liquor and food, beverage, and function operations. However, gaming revenues are expected to remain relatively stable.

Summary of Financial Position and Outlook

Eumundi Group's financial position remained strong with net assets increasing by $1.979 million during the half-year to $64.690 million at balance date, representing $1.38 per share. The Group's outlook remains cautious about the potential impact of tightening financial conditions and market competition on the Group's retail liquor and food, beverage, and function operations. However, the Board expects a solid result for the remainder of FY24, focusing on effective customer growth and retention strategies, and the pursuit of operational efficiencies to maximize shareholder returns.