EnGro Corporation Limited reported a net profit of S$35.19 million for the six months ended Jun 30, up 306.8 per cent year-on-year, lifted by a rebound in its core integral cement and ready-mix concrete (ICR) business and a sizeable fair-value gain from investment holdings.
Basic earnings per share rose to 29.72 Singapore cents from 7.29 cents a year earlier. No interim dividend was declared, consistent with the group’s policy of paying a single year-end distribution.
Revenue grew 70.3 per cent YoY to S$177.93 million. The ICR segment accounted for S$174.40 million, a 73.9 per cent increase, supported by higher construction activity in Singapore and Malaysia. Specialty polymer contributed S$3.53 million, down from S$4.18 million in the prior period amid weak automotive demand.
Segment profit before headquarters costs and other adjustments more than quadrupled to S$49.25 million. Building materials delivered S$24.68 million while the investments division booked S$24.62 million, buoyed by a S$22.81 million unrealised fair-value gain on financial assets. Specialty polymer incurred a marginal loss of S$0.05 million and the food-and-beverage unit was near break-even.
Cost pressures persisted. Raw materials and consumables rose 62.6 per cent to S$107.04 million, and staff costs expanded 40.2 per cent to S$10.45 million, reflecting higher production volumes and wage inflation. Depreciation of property, plant and equipment climbed 61.1 per cent to S$3.68 million following fleet and plant expansions. Net finance costs widened to S$0.51 million.
The group generated S$10.34 million in operating cash flow, partly offset by S$7.86 million of net investing outflows—mainly S$8.48 million of additional investments—and S$8.41 million of financing outflows, including S$4.75 million in final and special dividends paid in April.
Looking ahead, EnGro expects Singapore’s construction demand, forecast by the Building and Construction Authority at S$47 billion–S$53 billion for 2026, to underpin ICR sales in the second half. In Malaysia, ongoing infrastructure and data-centre projects, as well as developments linked to the Johor-Singapore Special Economic Zone, support a positive volume outlook, though management cautions that logistics costs—especially demurrage charges—are likely to increase.
Specialty polymer volumes are projected to remain subdued as several automotive programmes have been deferred to 2027. The China ground-granulated blast-furnace slag (GGBS) joint ventures continue to face pricing headwinds amid the prolonged property-sector downturn, suggesting limited near-term improvement.
The group’s cash balance stood at S$62.47 million, and capital commitments totalled S$14.3 million, largely for venture-capital and private-equity investments as well as plant upgrades. No further dividend guidance was provided; the board reiterated that dividends are considered annually.