GLG Corp (ASX: $GLG) 1HFY2024 Financial Report Highlights

GLG Corp (ASX: $GLG) has reported a 3.6% decrease in revenue from US$69.5m to US$67.0m during the financial period ended 31 December 2023 (1HFY2024). The company's gross profit margin also decreased from 21.5% to 13.7% in 1HFY2024 due to price competition and lack of orders to meet the optimal level of production capacity. GLG expects the trading conditions experienced in 1HFY2024 to persist into 2HFY2024 and therefore anticipates a higher financial loss for the financial year ended 30 June 2024 compared to the previous financial year ended 30 June 2023.

Executive Commentary on 1HFY2024 Results

GLG's revenue decreased by 3.6% from US$69.5m to US$67.0m during 1HFY2024, mainly due to the loss of a major customer, unforeseen logistics delays, and price challenges. The gross profit margin also decreased to 13.7% due to price competition and lack of orders. Other income decreased by US$0.9m, selling and distribution costs decreased by 32.8%, and finance costs increased by 7.5%. GLG's net loss after tax for the half year period 31 December 2023 amounted to US$2.1m compared with a loss of US$0.1m in the corresponding financial period.

Summary of 1HFY2024 Results and Outlook

GLG Corp (ASX: $GLG) reported a 3.6% decrease in revenue and a significant decrease in gross profit margin for 1HFY2024. The company anticipates a higher financial loss for the financial year ended 30 June 2024 due to geopolitical uncertainties, price competition, high interest rates, and freight rate increase. Inventory, property, plant and equipment, right-of-use assets, and intangible assets all experienced decreases. GLG's net cash flow from operating activities decreased to US$2.9m, and the company's net cash and cash equivalents decreased by US$1.8m. GLG does not recommend the payment of an interim dividend for the financial period ended 31st December 2023. The company believes its balance cash position and forecast cash flow from continuing operations remain adequate to meet its working capital, capital expenditures, debt servicing, and other funding requirements.