OTS Holdings swings to S$0.3m 1H FY2026 loss on 15% revenue drop, margins hit by lower volumes and weaker exports
Summary:
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Revenue fell 15.4% to S$14.2 million in 1H FY2026, with declines across Modern Trade and General Trade and a 54% slump in “Others” as export sales weakened, partly offset by resilient Food Services revenue.
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The Group reported a net loss of S$0.3 million versus a S$0.7 million profit a year earlier, as gross margin contracted from 28.3% to 24.8% on lower production volumes and reduced sales.
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Operating costs were tightly managed, with marketing and distribution expenses down 20.2% and administrative costs down 9.7% following cost-cutting, although finance costs rose 28.6% on new bank borrowings.
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Net cash used in operations was S$1.2 million while S$0.9 million was invested mainly in plant and equipment for the new Malaysian manufacturing facility; financing inflows of S$1.7 million were driven by a S$2.0 million director loan and S$1.5 million new bank borrowings.
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Management highlights a tough cost and competitive backdrop, but is pressing ahead with capacity expansion in Malaysia and confirms a prior profit guidance; no interim dividend was declared as the Group prioritises cash conservation.