Davis Commodities Limited Announces Fiscal Year 2024 Financial Results
SINGAPORE, April 30, 2025 (GLOBE NEWSWIRE) -- Davis Commodities Limited (Nasdaq: DTCK) (the "Company" or "Davis Commodities"), an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products, today announced its financial results for the fiscal year 2024.
Ms. Li Peng Leck, Executive Chairperson and Executive Director of Davis Commodities, commented, "Despite the challenges posed by fluctuations in commodity prices and shipping costs, we remain confident in our ability to navigate these temporary headwinds. Our robust logistics supply chain is designed to mitigate the impact of such fluctuations, ensuring a steady flow of operations. Looking ahead, we are committed to expanding our market presence by strengthening our position in existing markets and exploring opportunities in new territories. This strategic approach not only supports growth but also helps diversify regional risks. Furthermore, by leveraging our longstanding relationships with trusted business partners, we aim to seize opportunities in emerging markets, driving long-term value and resilience."
Fiscal Year 2024 Financial Results
-- Revenue was $132.4 million for the year ended December
31, 2024, compared to $190.7 million for last fiscal
year, representing a decrease of 30.6%.
-- Gross profit was $2.3 million for the year ended December
31, 2024, compared to $7.0 million for last fiscal
year, representing a decrease of 66.9%.
-- Loss from operations was $3.7 million for the year
ended December 31, 2024, compared to income from operations
of $1.1 million for last fiscal year.
-- Net loss was $3.5 million for the year ended December
31, 2024, compared to net income of $1.1 million for
last fiscal year.
-- Basic and diluted loss per share was $0.14 for the
year ended December 31, 2024, compared to earnings
per share of $0.04 for the last fiscal year.
Revenue
Total revenue was $132.4 million for the year ended December 31, 2024, representing a decrease of 30.6% from $190.7 million for last year. This decrease was primarily attributable to a moderation in sales of sugar and rice products across key markets, particularly in Southeast Asia and Africa.
For the year ended December 31,
-------------------------------------------------
2022 % 2023 % 2024 %
-------- ----- -------- ----- -------- -----
US$'000 US$'000 US$'000
Sale of
sugar $154,757 74.9 $116,443 61.0 $ 86,599 65.5
Sale of
rice 34,200 16.5 26,440 13.9 18,680 14.1
Sale of
oil and
fat
products 17,568 8.5 47,623 25.0 26,642 20.1
Sale of
others 192 0.1 218 0.1 448 0.3
------- ----- ------- ----- ------- -----
Total
revenue $206,717 100.0 $190,724 100.0 $132,369 100.0
======= ===== ======= ===== ======= =====
In 2024, our operations in the sugar, rice and palm oil sectors faced a decline in revenue, driven by a range of supply chain disruptions, rising cost, regulatory challenges, and shift in market demand.
-- Revenue from sales of sugar was $86.6 million, a decline
of 25.6% from $116.4 million in 2023. The sugar segment
saw lower volumes due to regulatory constraints and
the limited availability of USD payments in certain
African countries.
-- Revenue from sales of rice was $18.7 million, down
29.3% from $26.4 million in 2023. Rice sales were
affected by ongoing restrictions on exports from India,
which disrupted sourcing and impacted pricing competitiveness.
-- Revenue from sales of oil and fat products was $26.6
million, a decrease of 44.1% from $47.6 million in
2023. Sales of oil and fat products, which had grown
significantly in the prior year, adjusted during 2024,
reflecting a normalization in demand and pricing.
-- Revenue from sales of other products (e.g., creamer
and tomato puree) was $0.4 million, reflecting a 105.5%
growth from $0.2 million in 2023. Sales of other products,
consisting primarily of creamer and tomato puree,
reflect a gradual expansion in niche product offerings.
A breakdown of revenue by geographic regions for the fiscal years ended December 31, 2024 and 2023 is summarized below:
For the year ended December 31,
-------------------------------------------------
2022 % 2023 % 2024 %
-------- ----- -------- ----- -------- -----
US$'000 US$'000 US$'000
Africa $ 56,863 27.5 $ 80,637 42.3 $ 68,448 51.7
China 16,629 8.0 17,731 9.3 11,957 9.0
Indonesia 79,645 38.5 22,502 11.8 12,672 9.6
Vietnam 28,663 13.9 9,109 4.8 6,999 5.3
Philippines 3,237 1.6 19,372 10.2 2,850 2.2
Thailand 1,980 1.0 13,119 6.9 12,989 9.8
Singapore 8,808 4.3 18,889 9.9 10,105 7.6
Other
countries 10,892 5.2 9,365 4.8 6,349 4.8
------- ----- ------- ----- ------- -----
Total revenue $206,717 100.0 $190,724 100.0 $132,369 100.0
======= ===== ======= ===== ======= =====
-- Africa remained our largest contributor, accounting
for approximately $68.4 million, or 51.7% of total
revenue, representing a decrease of approximately
$12.2 million, or 15.1%, compared to the year ended
December 31, 2023.
-- China contributed approximately $12.0 million, or
9.0%, decrease approximately $5.8 million, or 32.6%.
-- Indonesia recorded approximately $12.7 million, or
9.6%, reflecting a decrease of approximately $9.8
million, or 43.7%.
-- Philippines recorded approximately $2.9 million, or
2.2%, reflecting a decrease of approximately $16.5
million, or 85.3%.
-- These four regions represented the most material changes
in our geographic revenue mix for the year.
Cost of Revenue
Our cost of revenue decreased by approximately $53.7 million, or 29.2%, to approximately $130.0 million for the year ended December 31, 2024, from approximately $183.7 million for the year ended December 31, 2023. The decrease was mainly driven by lower costs across all major product segments. The cost of sugar sales fell by approximately $27.7 million, or 24.5%, while rice and oil and fat products declined by approximately $6.7 million, or 26.6%, and $19.4 million, or 43.0%, respectively. The decline reflects lower sales volumes, product mix changes, and softer raw material prices. The cost of others, primarily creamer and tomato puree, rose slightly in line with increased sales volume, amounting to approximately $0.4 million.
Gross Profit and Gross Margin
For the year ended December 31, 2024, our gross profit decreased by approximately $4.7 million, or 66.9%, to approximately $2.3 million, compared to approximately $7.0 million for the year ended December 31, 2023.
Gross margin declined to 1.8% from 3.7%, due to lower sales volumes, reduced pricing flexibility, and higher input costs arising from commodity price fluctuations and supply chain disruptions.
Operating Expenses
Operating expenses of the Company were $6.0 million for fiscal year 2024, which increased by 2.4% from $5.9 million for fiscal year 2023.
-- Selling and marketing expenses decreased by approximately
$0.7 million, or 29.4%, to approximately $1.7 million,
compared to approximately $2.4 million for the year
ended December 31, 2023. This decrease was mainly
due to lower sales commissions and reduced business
development activities.
-- General and administrative expenses increased to approximately
$4.3 million, compared to approximately $3.4 million
for the year ended December 31, 2023, and approximately
$2.3 million for the year ended December 31, 2022.
The increase in 2024 was primarily attributable to
higher listed company-related expenses, which accounted
for approximately 35.4% of the total general and administrative
expenses. These included legal and professional fees,
listing fees, and other associated costs such as transfer
agent fees, director fees, investor relations, audit
fees and consultancy fees. In addition, an allowance
for expected credit losses of approximately $0.3 million
was recognized in 2024.
Other Income and Interest Expense
Other income was $0.5 million for fiscal year 2024, which increased by 143.4% from $0.2 million for fiscal year 2023. This increase was primarily due to an increase in interest income charged to a related party compared to the previous fiscal year 2023.
Interest expense increased by approximately $0.023 million, or 20.9%, from approximately $0.11 million for the year ended December 31, 2023 to approximately $0.13 million for the year ended December 31, 2024. The increase was mainly due to full-year interest accrued to a related party, compared to interest that only began accruing from July 2023. The Company also acquired a motor vehicle in 2023 under a finance lease arrangement, which resulted in additional interest expense.
Net Income
Taking into account all of the above, the Group recorded a net loss of approximately $3.5 million for the year ended December 31, 2024, compared to a net income of approximately $1.1 million for the year ended December 31, 2023 and approximately $4.6 million for the year ended December 31, 2022.
Financial Condition
As of December 31, 2024, the Company had cash and cash equivalents of $0.68 million, compared to $1.3 million as of December 31, 2023.
Net cash used in operating activities was approximately $0.8 million, primarily reflecting our net loss of approximately $3.5 million, as positively adjusted by (i) non-cash expenses such as depreciation, unrealized loss on derivative contract at fair value, allowance for expected credit losses of approximately $0.3 million, and interest expenses totaling approximately $0.1 million, and (ii) a decrease in accounts receivable of approximately $9.4 million. These were offset by (i) a decrease in accounts payable, accruals and other payables of approximately $6.2 million, (ii) a decrease in income tax payable and lease liabilities totaling approximately $0.7 million, and (iii) an increase in margin deposits of approximately $0.04 million.
Net cash used in investing activities was approximately $0.01 million, primarily for administrative and operational purpose.
Net cash provided by financing activities was approximately $0.1 million, mainly attributable to advances from a related party of approximately $0.5 million, partially offset by repayment of bank borrowings of approximately $0.2 million, finance lease repayments of approximately $0.03 million and interest payments totaling of approximately $0.09 million.
About Davis Commodities Limited
Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands: Maxwill and Taffy in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services. The Company utilizes an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries, as of the fiscal year ended December 31, 2023. For more information, please visit the Company's website: ir.daviscl.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may," or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S.Securities and Exchange Commission.
DAVIS COMMODITIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amount in thousands, except for share and per share
data, or otherwise noted)
As of December 31,
---------------------
2023 2024
----------- --------
US$'000 US$'000
Assets
Current assets:
Cash and cash equivalents 1,330 678
Accounts receivable, net 15,267 7,692
Prepaid expenses and other current
assets, net 6,131 3,521
Inventory 537 319
---------- --------
Total current assets 23,265 12,210
---------- --------
Property, plant and equipment 633 578
Right-of-use asset 73 37
Loan to a related party, net 5,907 5,972
Other receivable -- non-current, net -- 891
---------- --------
Total non-current assets 6,613 7,478
---------- --------
TOTAL ASSETS 29,878 19,688
========== ========
Liabilities
Current liabilities:
Bank loans - current 207 219
Lease payable - current 36 37
Finance lease - current 29 29
Accounts payable 14,323 9,134
Accruals and other current liabilities 3,850 2,236
Income taxes payable 713 35
---------- --------
Total current liabilities 19,158 11,690
---------- --------
Bank loans -- non-current 323 103
Lease payable -- non-current 38 --
Finance lease -- non-current 101 72
Deferred tax liabilities -- --
Amount due to a related party -- 1,096
---------- --------
Total non-current liabilities 462 1,271
---------- --------
TOTAL LIABILITIES 19,620 12,961
Commitments and contingencies -- --
Shareholders' equity
Ordinary shares US$0.000000430108 par
value per share; 232,500,000,000
authorized as of December 31, 2023 and
2024; 24,500,625 shares issued and
outstanding** * *
Additional paid-in capital 3,151 3,151
Merger reserve 1,113 1,113
Retained earnings 5,981 2,452
Accumulated other comprehensive income 13 11
---------- --------
Total shareholders' equity 10,258 6,727
---------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 29,878 19,688
========== ========
* Retrospectively restated for the effect of a 2,325-for-1
share subdivision
** Denotes amount less than US$'000.
DAVIS COMMODITIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME
(Amount in thousands, except for share and per share
data, or otherwise noted)
For the years ended December 31,
---------------------------------------
2022 2023 2024
----------- ----------- -----------
US$'000 US$'000 US$'000
Revenues 206,717 190,724 132,369
Cost of revenues (193,840) (183,695) (130,044)
---------- ---------- ----------
Gross profit 12,877 7,029 2,325
Operating
expenses:
Selling and
marketing
expenses (5,307) (2,439) (1,723)
General and
administrative
expenses (2,287) (3,443) (4,302)
---------- ---------- ----------
Total operating
expenses (7,594) (5,882) (6,025)
---------- ---------- ----------
Income/(loss) from
operations 5,283 1,147 (3,700)
Other
income/(expense):
Other income 285 198 482
Interest expense (33) (110) (133)
---------- ---------- ----------
Total other income 252 88 349
---------- ---------- ----------
Income/(loss)
before tax
expense 5,535 1,235 (3,351)
Income tax expense (920) (149) (178)
---------- ---------- ----------
Net income/(loss) 4,615 1,086 (3,529)
========== ========== ==========
Other
comprehensive
(loss)/income
Foreign currency
translation
(loss)/gain, net
of taxes (2) 8 (2)
---------- ---------- ----------
Total comprehensive
income/(loss) 4,613 1,094 (3,531)
========== ========== ==========
Net income/(loss)
per share
attributable to
ordinary
shareholders
Basic and diluted $ 0.20 $ 0.04 $ (0.14)
========== ========== ==========
Weighted average
number of ordinary
shares used in
computing net
income per share
Basic and diluted* 23,250,000 24,500,625 24,500,625
========== ========== ==========
* Retrospectively restated for the effect of a 2,325-for-1
share subdivision
DAVIS COMMODITIES LIMITED AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amount in thousands, except for share and per share
data, or otherwise noted)
For the years ended December
31,
-------------------------------
2022 2023 2024
-------- ------- -------
US$'000 US$'000 US$'000
Net income/(loss) 4,615 1,086 (3,529)
Adjustments:
Depreciation and
amortization 58 62 96
Unrealized loss on
derivative contract
at fair value 218 -- 14
Allowance for
expected credit
losses -- 500 254
Impairment loss for
damaged inventory -- 16 --
Bad trade debts
written off -- 2 *
Interest expense 33 103 129
Interest expense on
finance lease -- 2 4
Interest expense on
lease liability * 5 --
Interest income (56) (88) (384)
------- ------- -------
4,868 1,688 (3,416)
Changes in operating
assets:
(Increase)/decrease
in inventories (2,082) 1,624 218
Decrease/(increase)
in margin deposits 559 571 (41)
Decrease/(increase)
of accounts and
other receivables 4,146 (10,808) 9,398
(Increase)/decrease
in deferred offering
costs (1,129) 1,129 --
(Decrease)/increase
in accounts and
other payables, and
accruals (8,727) 8,253 (6,221)
Decrease in amount
due from directors * -- --
Decrease in operating
lease liabilities -- (3) (37)
Increase/(decrease)
in income tax
payable 419 (645) (678)
------- ------- -------
Cash (used in)/ provided
by operating activities (1,946) 1,809 (777)
------- ------- -------
Interest received 56 88 --
Purchase of property,
plant and equipment (14) (296) (5)
------- ------- -------
Cash provided by/(used in)
investing activities 42 (208) (5)
------- ------- -------
Advances from related
parties * -- 453
Loan to a related party -- (5,907) --
Issuance of share
capital * * --
Dividend paid (3,001) -- --
Net proceeds from
offering -- 3,151 --
Proceeds from bank
borrowings 575 -- --
Proceeds from finance
lease -- 144 --
Repayment of bank
borrowings (146) (155) (208)
Interest paid (33) (28) (82)
Principal payment of
finance lease -- (14) (29)
Principal payment of
lease liabilities (38) -- --
Payment of interest on
finance lease -- (2) (4)
Payment of interest on
lease liabilities * -- --
------- ------- -------
Cash (used in)/provided by
financing activities (2,643) (2,811) 130
------- ------- -------
Net change in cash and
cash equivalents (4,547) (1,210) (652)
Cash and cash equivalents
as of beginning of the
year 7,087 2,540 1,330
------- ------- -------
Cash and cash equivalents
as of the end of the
year 2,540 1,330 678
======= ======= =======
Supplementary Cash Flows
Information
Cash paid for taxes (499) (791) (856)
Operating lease asset
obtained in exchange
for operating lease
obligations -- 150 --
Dividend that was offset
against loan assumed by
shareholder/director (671) -- --
======= ======= =======
* Denotes amount less than US$'000.
Forward-Looking Statements
This press release contains forward-looking statements that are based on the management's current expectations, estimates, and assumptions about future economic conditions, industry performance, company operations, and financial results. These statements are not guarantees of future events or performance and involve a number of risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements due to factors such as changes in economic conditions, market trends, industry developments, and operational factors. There can be no assurance that the expected events or outcomes will occur as anticipated.
For more information, please contact: Davis Commodities Limited Investor Relations Department Email: investors@daviscl.com Celestia Investor Relations Dave Leung Email: investors@celestiair.com
(END) Dow Jones Newswires
April 30, 2025 17:00 ET (21:00 GMT)
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