Greenway November 10 | SC Johnson Holdings (01955.HK) announced that the company expects to record earnings for the six months ended September 30, 2023, a decrease of about 33% compared to the company's earnings of about HK$1,224.1 million for the six months ended September 30, 2022. After considering the changes in accounting estimates contained in the announcement, it is expected that the company's equity holders should account for the medium-term profit, a decrease of about 72% compared to the profit of approximately HK$33.9 million for the six months ended September 30, 2022.
According to currently available information, the decrease in medium-term income and profit for the six months ended September 30, 2022 was mainly due to (i) the unsuccessful renewal of certain government cleaning contracts, which reduced revenue from government customers in the medium term; (ii) intense market competition led to a decline in the Group's profit from certain service contracts; (iii) government subsidy revenue from the Hong Kong Special Administrative Region Government Employment Protection Plan decreased by about HK$3.1 million in the interim period compared to the six months ended September 30, 2022; and (iv) the reduction in some of the Group's fixed expenses in the interim period was less than Decline in earnings. The medium-term profit attributable to the company's equity holders declined 72% compared to the same period in 2022 compared to the same period in 2022 and 57% in profit for the first five months ending August 31, 2023 compared to the same period in 2022. The main reason was due to the additional expenses arising from the two completed government contracts in September 2023.