The company exhibits a concerning revenue contraction of 0.96% coupled with a thin gross margin of 16.14% that fails to offset an operating margin of -28.79%.
| Metric | Jun'24 | Jun'23 | Jun'22 |
|---|
| Sales/Revenue | 5.16M | 5.21M | 5.27M |
| Revenue Growth % | -0.96% | -1% | - |
| Cost of Goods Sold | 4.33M | 4.07M | 4M |
| COGS % of Revenue | 83.86% | 78% | 75.9% |
| Gross Profit | 833.68K | 1.15M | 1.27M |
| Gross Margin % | 16.14% | 22% | 24.1% |
| Gross Profit Growth % | -27.33% | -9.61% | - |
| Operating Expenses | 2.32M | 1.54M | 1.07M |
| OpEx % of Revenue | 44.93% | 29.62% | 20.38% |
| Selling, General & Admin | 1.86M | 1.25M | 820.99K |
| SG&A % of Revenue | 35.93% | 24.06% | 15.59% |
| Research & Development | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | 465.04K | 289.88K | 252.19K |
| Operating Income | -1.49M | -397.23K | 195.98K |
| Operating Margin % | -28.79% | -7.62% | 3.72% |
| Operating Income Growth % | -274.27% | -302.69% | - |
| EBITDA | -229.29K | 448.07K | 474.68K |
| EBITDA Margin % | -4.44% | 8.59% | 9.01% |
| EBITDA Growth % | -151.17% | -5.6% | - |
| D&A (Non-Cash Add-back) | 1.26M | 845.3K | 278.7K |
| EBIT | -1.3M | -307.31K | 623.75K |
| Net Interest Income | -165.15K | -134.43K | -76.42K |
| Interest Income | 0 | 0 | 0 |
| Interest Expense | 165.15K | 134.43K | 76.42K |
| Other Income/Expense | 21.83K | -44.51K | 351.35K |
| Pretax Income | -1.46M | -441.75K | 547.33K |
| Pretax Margin % | -28.37% | -8.47% | 10.39% |
| Income Tax | 1.81K | 0 | 34K |
| Effective Tax Rate % | -0.12% | 0% | 6.21% |
| Net Income | -1.47M | -441.75K | 513.33K |
| Net Margin % | -28.4% | -8.47% | 9.75% |
| Net Income Growth % | -232.02% | -186.05% | - |
| Net Income (Continuing) | -1.47M | -441.75K | 513.33K |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | -0.61 | -0.03 | 0.02 |
| EPS Growth % | -2110.14% | -216.46% | - |
| EPS (Basic) | -0.09 | -0.03 | 0.03 |
| Diluted Shares Outstanding | 16M | 16M | 21.65M |
| Basic Shares Outstanding | 16M | 16M | 16M |
| Dividend Payout Ratio | - | - | - |
Insolvency and liquidity crisis
As indicated by recent financial disclosures, Premium Catering experienced a year-over-year revenue contraction of 0.96%, suggesting that the firm is failing to capture growth within its core migrant worker catering niche despite broader economic expansion in the Singaporean market.
The inability to grow top-line revenue in a stable demographic environment implies that the company may be losing market share or facing capacity constraints within its dormitory-based operations. This stagnation warrants further investigation into whether contract renewals are being lost to more efficient competitors or if the firm is intentionally limiting volume to avoid further operating losses.
Based on reported figures, the company maintains a thin gross margin of 16.14%, which appears insufficient to absorb inflationary pressures on food commodities and labor costs, leaving the business highly exposed to price volatility within the competitive Singaporean catering landscape.
The narrow gross margin profile suggests that Premium Catering acts as a price-taker, lacking the necessary pricing power to pass through rising input costs to its price-sensitive dormitory-based clientele. This structural limitation implies that any further increase in food or labor costs could lead to immediate and severe gross margin erosion.
According to the latest income statement analysis, the firm reported an operating margin of -28.79%, indicating that fixed overhead costs are significantly misaligned with current revenue levels and that the business lacks the scale required to achieve operational efficiency.
The deeply negative operating margin suggests that the company's administrative and logistical infrastructure is currently too heavy for its revenue base. Investors should monitor whether management can rationalize these fixed costs, as the current trajectory appears unsustainable without a significant increase in volume or a drastic reduction in overhead.
With a reported cash balance of only $34,237, the company faces extreme liquidity risks, as evidenced by its inability to generate positive operating cash flow to support its ongoing business operations in the face of persistent losses.
The minimal cash position relative to the scale of operations suggests that the firm may be nearing a point of financial distress, potentially requiring an emergency capital infusion to remain a going concern. This precarious balance sheet position may indicate that the current business model is not viable under existing cost structures.
Quick answers to the most common questions about buying PC stock.
For fiscal year 2024, Premium Catering (Holdings) Limited (PC) reported total revenue of $5.2M. This represents a 1.9% decline compared to $5.3M in 2022.
Premium Catering (Holdings) Limited (PC) reported a net loss of $1.5M for the fiscal year ending 2024.
Premium Catering (Holdings) Limited (PC) reported an operating income of $-1.5M, resulting in an operating profit margin of -28.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Premium Catering (Holdings) Limited (PC) generated $0.8M in gross profit for the year, representing a gross profit margin of 16.1%. This demonstrates the company's core pricing power and production efficiency.