Yhi International Posts 7.8% Revenue Growth but Shrinks Profit Margin
YHI International (SGX:BPF) reported a 7.8% increase in revenue to S$406.5m for the full year 2024, driven by higher sales and a stronger product mix. The company's net income, however, declined 27% to S$9.58m due to increased expenses. The profit margin dropped from 3.5% in FY 2023 to 2.4%, as the company struggled to maintain its financial discipline.
- The decline in profit margin suggests that YHI International is facing increasing operational pressures, which may test its ability to sustain growth and profitability in the long term.
- What specific factors are driving the increased expenses, and how will YHI International manage these costs to restore its profit margins and maintain its competitive position in the market?