Prestal Holdings reports financial performance for the half year ended 31 December 2023

Prestal Holdings Limited (ASX: $PTL) has reported its financial performance for the half year (26 weeks) ended 31 December 2023. The company's underlying Net Profit After Tax (NPAT) from continuing operations for the period was $2.128 million, showing a marginal decrease of 4.1% compared to the Previous Comparative Period (PCP) ending 25 December 2022. However, after accounting for non-cash impairment charges, NPAT from continuing operations resulted in a loss of $19.925 million for HY24. The company also reported a total reported NPAT for HY24 as a loss of $1.033 million compared to HY23 total NPAT of $3.357 million.

Executive Commentary on Financial Performance and Strategic Objectives

The financial performance for the half year reflects the challenging market conditions in the B2C sector, leading to a decline in net sales revenue and NPAT from continuing operations. The company's focus on effective working capital management resulted in strong cash flow from operating activities, and the sale of the Consumer Products business contributed to the reported profit after tax from discontinued operations. The Group's strategic objectives include revamping brand image, developing new products, updating the website, and exploring additional acquisition opportunities to drive growth and innovation.

Outlook and Dividend Declaration

Despite the challenging market conditions, Prestal Holdings remains positive about the outlook for its business. The company aims to revamp its brand image, develop new products for both B2B and B2C channels, update its website, and explore additional strategically suitable acquisition opportunities. In respect of the half year ended 31 December 2023, the company has declared a special dividend of 6.0 cents per share payable on 11 March 2024 with a record date of 4 March 2024. The company's strong balance sheet with no net debt and significant cash on hand provides it with the capacity to fund its growth strategy through acquisitions, innovation, and market expansion.