EuroSports Global narrows 9M loss to S$1.7m as gross margin and other income improve despite 23% revenue drop
Summary:
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EuroSports Global’s 9MFY2026 revenue fell 22.6% to S$34.1m on lower automobile sales, but gross profit slipped only 3.1% to S$5.1m as gross margin widened to 15.1% from 12.0% on higher‑margin car mix.
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Net loss for 9M to 31 Dec 2025 shrank sharply to S$1.7m from S$6.8m a year earlier, helped by a S$0.8m jump in sales incentives and other income, lower impairments on receivables and reduced operating expenses; 3QFY2026 net loss was S$0.2m.
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Other income more than doubled to S$1.4m, driven mainly by S$0.86m of manufacturer sales incentives, while net other losses narrowed materially as provisions for trade receivables were scaled back.
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The Group remains loss‑making and in negative equity of about S$0.1m, with current liabilities exceeding current assets by S$2.5m; management nonetheless prepares the accounts on a going‑concern basis, citing expected cash flows from its automobile distribution business and funding actions including refinancing and treasury share sales.
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The sustainable mobility (electric motorcycle) unit continues to be pre‑revenue, with capitalised development costs of about S$13.4m tested for impairment on the basis of cash flows from mass production and deliveries expected to start in 2027.