Creative Technology Ltd, the Singapore-based consumer electronics company, has announced its financial results for the second half year and full financial year ended 30 June 2024 (FY2024). The company reported increased sales and improved gross profit margins, but continued to face net losses.
Key Financial Highlights:
- Net Sales:
- FY2024: Increased by 12% compared to FY2023
- Second half of FY2024: Up 11% year-on-year
- Growth observed across all regions: Asia Pacific (+11%), Americas (+8%), and Europe (+15%)
- Gross Profit Margin:
- FY2024 and second half of FY2024: 30%
- Improved from 25% in FY2023 and 29% in the second half of FY2023
- Net Loss:
- FY2024: US$10.8 million (improved from US$16.7 million in FY2023)
- Second half of FY2024: US$6.8 million (slightly higher than US$6.1 million in H2 FY2023)
- Research and Development:
- Expenses decreased by 32% in FY2024 compared to FY2023
- Cash Position:
- Decrease in cash and cash equivalents noted
- Net cash used in operating activities: US$12.3 million in FY2024
The company attributed the sales growth to higher revenue from newly launched products. Despite the challenging business environment, Creative managed to improve its gross profit margin, particularly with contributions from these new products.
Creative Technology’s net loss narrowed in FY2024, partly due to reduced operating expenses following a restructuring exercise in December 2022. However, the company continues to face headwinds, including foreign exchange losses and ongoing operating losses.