The American Club 2023/2024 Annual Report

PAGE 38

FOR THE YEAR ENDED JUNE 30, 2024

FINANCIAL HIGHLIGHTS

The Club continued to face another difficult year in Fiscal Year 2024 (FY2024) with sluggish global economic recovery as well as persistent geopolitical and trade tensions.

While inflation seems to be easing in the second half of FY2024, a tight labor market in the service industry and a reduction in foreign worker passes resulted in a significant upward pressure in wages. The elevated wage costs were partially mitigated with a lower energy rate on renewal. Overall, the Club delivered an underlying Gross Operating Loss before bonuses of $2.0 million.

It should be noted that the increase in utility costs has already started to taper off in FY2024, and we expect to see a further reduction of $0.3 million in FY2025.

-5% GOP Before Bonus

59% Payroll Ratio

24% OPEX Ratio

78% Gross Profit Margin

FY2023 S$ ‘000

% of Total Income

FY2024 S$ ‘000

% of Total Income

INCOME STATEMENT

100%

Total Income

36,961

100%

36,371 8,305 28,066 19,865

23% 77% 55% 18%

Cost of Goods Sold

8,111

22% 78% 59% 18% 0% 6% -5%

Gross Profit Payroll Costs

28,850

21,901 6,835

6,563 1,638 2,716

Opex (excluding utility costs)

5% 7%

Gross Operating Profit before utility costs

115

Utility Costs

2,116

(1,078)

-3%

Gross Operating Profit/(Loss) before bonus

(2,001)

1,986

5%

Variable Bonus

1,770

5%

(3,064)

-8%

Gross Operating Loss after bonus

(3,771)

-10%

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024