Report Summary and Key Facts:
- Report Date: The sustainability report is for the financial year ended 31 May 2024 and was published in September 2024.
- Company Performance: GKE reported a 1.56% year-on-year increase in revenue from S$108.9 million in FY2023 to S$110.6 million in FY2024. Approximately 40.3% of revenue was distributed to key stakeholders, 35.6% to employees, 2.2% to the governments in Singapore and China, and 2.5% to capital providers.
- Economic Value Retained: The economic value retained was approximately 3.9% of revenue.
- Compliance and Data Privacy: In FY2024, there were no significant fines or non-monetary sanctions relating to non-compliance with laws and regulations. GKE also maintained a strong data privacy record with no substantiated complaints concerning breaches of customer privacy or loss of customer data.
- Employee Welfare: The total headcount was 928 employees. The overall turnover rate reduced to 32.4% in FY2024 from 37.6% in FY2023. GKE aims to reduce this rate to 15% in FY2025.
- Environmental Responsibility: GKE implemented initiatives to reduce waste, manage greenhouse gas (GHG) emissions, and conserve water. The company reported a 22-tonne recycling of plastic, paper, and carton boxes in Singapore and increased its use of renewable energy, with solar panels contributing 4.8% of its total energy consumed in FY2024.
- GHG Emissions: The total Scope 1 and Scope 2 GHG emissions in FY2024 were 7,177 tonnes of CO2e, an 8.7% increase from the previous year.
- Key Focus Areas for FY2025: The company plans to monitor waste generation, maintain zero workplace fatalities, and implement strategies to identify climate-related risks and opportunities.
Dividends:
- The report does not mention the payment of dividends for FY2024.
Special Activities for Profitability:
- Climate-Related Disclosures: GKE is preparing to comply with climate-related disclosures by FY2025.
- Energy Optimization: Investments in solar panels and energy-efficient practices in logistics have been undertaken to optimize transport networks and reduce costs.
- Sustainability Initiatives: A focus on the environmental, social, and governance (ESG) aspects to maintain long-term value for stakeholders.
Recommendations for Investors:
- For Current Stockholders: GKE demonstrates a strong focus on sustainability, compliance, and responsible management. With ongoing efforts to improve environmental efficiency, investors holding this stock may consider maintaining their position, especially if they value companies with ESG priorities. However, it’s important to monitor the company’s progress in reducing operational costs and managing rising GHG emissions.
- For Potential Investors: GKE presents an opportunity for investors interested in companies with a sustainability focus. The company’s long-term commitment to sustainable practices and continuous growth in revenue make it a candidate for investment. However, new investors should perform due diligence, especially concerning the company’s ability to manage climate risks and improve profitability.
Disclaimer:
The above recommendations are based on the provided report’s information. This summary should not be considered as financial advice. Investors should conduct their analysis and consult with financial advisors before making any investment decisions.
