On behalf of the Board of Directors (the "Board") of TEHO International Inc Ltd. (the "Company" and together with its subsidiaries, the "Group"), it is my pleasure to present to you the annual report for the financial year ended 30 June 2022 ("FY2022").
The Group's business environment remained challenging in FY2022. While COVID-19 pandemic restrictions started to ease globally, the Russia-Ukraine war and persistent inflation resulted in sharp increases in energy prices and interest rates. In spite of these headwinds the Group remained profitable, posting a $2.8 million profit after tax in FY2022. In addition, although the Group reported a decrease in overall revenue, our core business in the Marine & Offshore industry registered a 2.9% increase in revenue in FY2022 as compared to the financial year ended 30 June 2021 ("FY2021").
Lim See Hoe
Executive Chairman and Chief Executive Officer
Revenue decreased by $4.6 million or 7.5% to $57.2 million in FY2022 from $61.8 million in FY2021. The decrease was mainly attributable to the absence of sale of landed property. Notwithstanding this, the Group's gross profit of $22.6 million in FY2022 was an increase of $0.8 million or 3.6% from $21.8 million in FY2021. The Group's gross profit margin also increased to 39.5% in FY2022 as compared to 35.3% in FY2021. The increase in gross profit margin was driven by higher revenue from the Marine & Offshore Segment.
The Group's profit before tax was $3.7 million in FY2022 as compared to $4.1 million in FY2021. After accounting for income tax of $0.9 million, the Group's profit for FY2022 was $2.8 million as compared to $3.2 million in FY2021.
Thriving during challenging times
In view of the current challenges, the Group will continue to maintain a cautious outlook for the current financial year, the financial year ending 30 June 2023 ("FY2023") and will step up efforts to capitalise on the success of our 3-pronged strategy - cost management, liquidity improvement and strengthening of global capability. We will continue to analyse and reinforce our strategies in FY2023. Our inventory capacity has expanded to over 300,000 square feet worldwide after the acquisition of the warehouse facility in Houston, Texas.
Although the Russia-Ukraine war has increased market volatility, shipping volume in oil tankers is projected to expand sharply due to the European Union's embargo of Russian oil. We hope our proven global supply strategy will enable us to benefit from this opportunity in FY2023 and beyond.
I am extremely pleased that the Group has maintained our financial performance in spite of the ongoing challenges in the business environment. We have shown resilience in our core business and our global expansion is gaining momentum. I believe that we can continue to navigate through these challenging times. We will carry our good work into FY2023 and I hope that this will bear fruits in FY2023.
Reaping the rewards
In view of the commendable set of results in FY2022, the Board has proposed a first and final dividend of 0.1 Singapore cents per share to reward our valued shareholders for their support of the Group.
I would like to take this opportunity to thank my fellow Board of Directors for the guidance and counsel throughout the year. On behalf of the Board and Management, I would like to sincerely thank our business partners, customers, bankers and most importantly, our employees for their unwavering efforts and contributions to the Group. Last but not least, I would like to express my deep appreciation for our shareholders' trust and loyal support in the Company.