Revenue contraction and margin compression are evident, with gross margins falling from 40.3% in 2023Q4 to 35.3% in 2024Q4, signaling an inability to offset rising operational costs.
| Sales/Revenue | 4.22M | 4.65M | 2.76M |
| Revenue Growth % | -9.33% | 68.23% | - |
| Cost of Goods Sold | 2.69M | 2.66M | 1.57M |
| COGS % of Revenue | 63.9% | 57.2% | 56.8% |
| Gross Profit | 1.52M | 1.99M | 1.19M |
| Gross Margin % | 36.1% | 42.8% | 43.2% |
| Gross Profit Growth % | -23.52% | 66.67% | - |
| Operating Expenses | 1.48M | 784K | 440K |
| OpEx % of Revenue | 35.01% | 16.86% | 15.92% |
| Selling, General & Admin | 1.38M | 720K | 421K |
| SG&A % of Revenue | 32.78% | 15.48% | 15.23% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 94K | 64K | 19K |
| Operating Income | 46K | 1.21M | 754K |
| Operating Margin % | 1.09% | 25.94% | 27.28% |
| Operating Income Growth % | -96.19% | 59.95% | - |
| EBITDA | 130K | 1.24M | 771K |
| EBITDA Margin % | 3.08% | 26.6% | 27.89% |
| EBITDA Growth % | -89.49% | 60.44% | - |
| D&A (Non-Cash Add-back) | 84K | 31K | 17K |
| EBIT | 196K | 1.26M | 816K |
| Net Interest Income | -19.41K | -51.23K | -18.54K |
| Interest Income | 6.13K | 2.96K | 0 |
| Interest Expense | 25.54K | 54.19K | 18.54K |
| Other Income/Expense | 125K | 29K | 45K |
| Pretax Income | 171K | 1.24M | 799K |
| Pretax Margin % | 4.06% | 26.56% | 28.91% |
| Income Tax | -1K | 117K | 136K |
| Effective Tax Rate % | -0.58% | 9.47% | 17.02% |
| Net Income | 172K | 1.12M | 663K |
| Net Margin % | 4.08% | 24.04% | 23.99% |
| Net Income Growth % | -84.62% | 68.63% | - |
| Net Income (Continuing) | 172K | 1.12M | 663K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | 4.55 | 29.61 | 17.55 |
| EPS Growth % | -84.63% | 68.72% | - |
| EPS (Basic) | 4.55 | 29.61 | 17.55 |
| Diluted Shares Outstanding | 37.78K | 37.78K | 37.78K |
| Basic Shares Outstanding | 37.78K | 37.78K | 37.78K |
| Dividend Payout Ratio | 174.42% | - | - |
Insolvency and liquidity constraints
As indicated by the most recent quarterly filings, FCHL experienced a 5.7% year-over-year revenue decline, reflecting a broader trend of decelerating top-line performance that suggests potential erosion in the company's core public school service contracts and private student enrollment volumes within the Singaporean market.
The consistent downward pressure on revenue suggests that the company's reliance on institutional MOE contracts may be facing competitive or administrative friction. Investors should monitor whether this contraction is a temporary seasonal fluctuation or a more permanent loss of market share in the specialized sports education sector.
Based on reported financial statements, gross margins have compressed from 40.3% in 2023Q4 to 35.3% in 2024Q4, highlighting a significant inability to pass through rising labor costs or maintain pricing power within the highly competitive Singaporean education and training services landscape.
The narrowing gross margin indicates that the variable costs associated with certified instructors are outpacing the company's ability to adjust tuition fees. This trend suggests that the firm's service-heavy model lacks the necessary pricing leverage to protect profitability during periods of inflationary pressure on wages.
According to recent income statement data, the company's operating margin plummeted to -6.5% in 2024Q4, demonstrating that SG&A expenses are not scaling efficiently and are instead exacerbating the impact of revenue declines on the firm's bottom-line profitability and overall financial stability.
The transition from a 25.0% operating margin in 2023Q4 to negative territory suggests that fixed administrative costs are becoming a heavy burden on the business. This lack of operating leverage implies that the current cost structure is ill-suited for the company's reduced revenue scale.
As reported in financial statements, the combination of a 108.40% debt-to-equity ratio and a meager $314,000 cash balance suggests that the company faces extreme liquidity risks that could preclude any meaningful operational turnaround or necessary reinvestment in its service delivery infrastructure.
Short-sellers would likely focus on the precarious nature of the balance sheet, which leaves virtually no room for error in a high-interest-rate environment. The current financial position warrants further investigation into whether the company can sustain its debt obligations without further dilutive financing or asset liquidation.
Quick answers to the most common questions about buying FCHL stock.
For fiscal year 2024, Fitness Champs Holdings Limited Common Stock (FCHL) reported total revenue of $4.2M. This represents a 52.5% increase compared to $2.8M in 2022.
Fitness Champs Holdings Limited Common Stock (FCHL) is profitable, generating $0.2M in net income for the fiscal year ending 2024 with a net profit margin of 4.1%.
Fitness Champs Holdings Limited Common Stock (FCHL) reported an operating income of $0.0M, resulting in an operating profit margin of 1.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Fitness Champs Holdings Limited Common Stock (FCHL) generated $1.5M in gross profit for the year, representing a gross profit margin of 36.1%. This demonstrates the company's core pricing power and production efficiency.