Avarga Limited reported net profit of S$21.7 million for the six months ended Jun 30, up 556 per cent year-on-year, largely because the prior-year period had included a one-off S$18.6 million withholding-tax charge on dividends from its Canadian unit. Group revenue fell 9 per cent to S$719.0 million as softer demand and lower average selling prices weighed on sales at its Taiga building-products arm.
Earnings per share (basic and diluted) came in at 17.30 Singapore cents, reversing a loss of 2.87 cents a year earlier. Avarga did not declare an interim dividend; it paid 1.20 Singapore cents in the corresponding 2025 period. The board said it is prioritising cash preservation amid “highly volatile and uncertain” market conditions.
Segmentally, the building-products division – which accounts for virtually all continuing operations – generated pre-tax profit of S$30.4 million, on par with the S$30.1 million recorded a year ago despite lower turnover. Segment gross profit was steady at S$81.3 million, with gross margin improving to 11.3 per cent from 10.3 per cent on the back of reduced input costs. The corporate and investments segment posted a pre-tax loss of S$2.5 million, markedly narrower than the S$21.4 million loss in 1H2025 when the withholding tax was incurred.
Other income fell to S$0.2 million from S$–19.8 million, reflecting the absence of last year’s withholding-tax expense and lower interest income (S$0.1 million versus S$1.7 million). Finance expenses edged up 4 per cent to S$2.8 million following higher utilisation of Taiga’s C$250 million revolving credit facility. Operating cash outflow narrowed to S$39.0 million from S$54.4 million, helped by smaller working-capital swings, while capital expenditure climbed to S$6.8 million, primarily for property, plant and equipment additions of S$19.9 million. Cash and cash equivalents stood at S$78.0 million at end-June, down from S$82.1 million at end-2025.
Post-closure adjustments related to the discontinued paper-mill business contributed a S$1.0 million after-tax gain, stemming from the reversal of provisions for gas take-or-pay charges.
Looking ahead, Avarga noted that Taiga’s performance is closely tied to North American residential construction and renovation activity. Industry forecasts project Canadian housing starts at 243,000-247,000 units in 2026, down from 259,000 in 2025, while US starts are expected to ease slightly to 1.35 million units. Against this backdrop, the group intends to conserve cash, focus on its core building-products distribution franchise and maintain financial flexibility through its revolving credit facility.