Olympia Capital reported a sharp decline in profitability for the six months to June 30, 2025, as higher operating expenses and financing costs weighed on performance, despite stronger gross margins.
The group posted a net profit of P991,243, down 54% from P2.1 million a year earlier. Revenue fell 5% to P23.5 million, but gross profit rose to P14.8 million from P13.9 million, reflecting improved cost of sales management.
However, operating expenses surged 16% to P13.8 million, largely driven by the opening of a new Johannesburg office and warehouse intended to strengthen the company’s regional footprint. Finance costs also jumped to P648,702 from P454,603, as debt increased due to the acquisition of the South African property and a fleet of trucks to support logistics.
Chairman Dr. Christopher W. Obura said the first half was marked by “a challenging environment,” including plant breakdowns and supply chain disruptions at subsidiary Kalahari Floor Tiles. The company mitigated raw material shortages by accelerating procurement and investing in its own transport fleet to ensure timely delivery to customers.
Total assets rose to P78.4 million from P68 million in June 2024, while shareholders’ equity increased slightly to P60.3 million. Cash and cash equivalents stood at P5 million, down from P6.6 million at the start of the year, reflecting capital expenditure on expansion.
Despite the weaker earnings, management expressed confidence that the expansion drive—particularly the Johannesburg office and fleet investment—will position the group for stronger growth in the region over the medium term.