Challenger Technologies posts 2021 net profit fell 24 percent

Challenger Technologies outlet at SuntecChallenger Technologies outlet at Suntec. Photo taken pre-Covid

Challenger Technologies reported Thursday its 2021 net profit fell 24 percent on-year to S$17.80 million on reduced Covid-related government support and higher operating expenses.

Revenue for the 12 months ended 31 December rose 5 percent on-year to S$283.16 million, the electronics retailer said in a filing to SGX.

The revenue increase was mainly due to a lower base a year earlier when stores were closed for the Circuit Breaker period to stem the spread of the Covid-19 virus and the impact of safe-management measures, Challenger said.

Retail sales rose by S$25.9 million as restrictions were eased and business activity around the region resumed, but that was offset by lower online and corporate sales, Challenger said.

Operating expenses grew by 13.8 percent on-year to S$46.8 million for the year, largely on lower Covid-related rental rebates, higher staff costs and selling expenses due to higher retail sales activity, Challenger said.

For the second half, Challenger reported net profit tumbled 38 percent on-year to S$8.43 million on revenue of S$147.39 million, down 3 percent on-year.

Challenger declared a final dividend of 2.8 Singapore cents a share, up from 2.7 Singapore cents a share in the year-ago period.

Outlook

In its outlook, Challenger said the retail sector remains challenging due to the evolving Covid-19 situation locally and globally.

“To mitigate these challenges, the group will continue to focus on driving greater productivity, ramping up e-commerce engagement and enhancing its overall product range. We will also continue to monitor the performance of existing and new stores closely by working on our core competencies thereby improving the gross margin arising from changes in sales mix,” Challenger said.