Davis Commodities Limited Announces Fiscal Year 2025 Financial Results
Rhea-AI Summary
Davis Commodities (OTC: DTCKF) reported fiscal 2025 revenue of $184.2 million, up 39.2% year over year, driven mainly by higher sugar and rice sales in Africa and China. Gross profit rose to $2.9 million, while gross margin slipped to 1.6%.
The company recorded a net loss of $5.0 million and operating loss of $5.2 million as operating expenses increased to $8.1 million, including higher legal fees and credit-loss allowances. Year-end cash reached $1.4 million, supported by bank borrowings. All per-share data reflect a 1-for-20 reverse share split effective February 5, 2026.
Positive
- Revenue increased 39.2% year over year to $184.2 million in 2025
- Gross profit rose 23.4% to $2.9 million in 2025
- Sugar revenue grew 47.4% to $127.7 million; rice revenue up 82.4% to $34.1 million
- Africa revenue rose 61.4% to $110.5 million, 60.0% of total revenue
- China revenue increased about 210.4% to $37.1 million, 20.1% of total revenue
- Cash and cash equivalents doubled to $1.4 million at December 31, 2025
Negative
- Net loss widened to $5.0 million from $3.5 million in 2024
- Operating loss increased to $5.2 million from $3.7 million year over year
- Gross margin declined to 1.6% from 1.8% despite higher revenue
- Operating expenses rose to $8.1 million from $6.0 million, led by higher G&A
- Allowance for expected credit losses increased to $1.8 million from $0.3 million
- Interest expense rose to $0.4 million from $0.1 million with higher bank borrowings
- Oil and fat product revenue fell 15.8% to $22.4 million
- Net cash used in operating activities increased to $1.0 million from $0.8 million
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 23 | H1 2025 results | Neutral | -2.1% | H1 2025 revenue growth with very slim net income and compressed margins. |
| Apr 30 | FY 2024 results | Negative | +13.9% | FY 2024 revenue and margin declines leading to a net loss versus prior profit. |
| Nov 13 | H1 2024 results | Negative | -2.9% | H1 2024 revenue and net income declines amid weaker sugar and oil demand. |
| May 15 | FY 2023 results | Negative | -7.3% | FY 2023 revenue and profit drops with margin compression and lower cash. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have produced modest, mixed price reactions, with negative fundamental trends sometimes met by positive moves.
Across four prior earnings-tagged updates since May 2024, Davis Commodities has moved from declining FY 2023 results with shrinking margins to FY 2024 losses, then H1 2024 revenue pressure but positive income, and H1 2025 revenue re-acceleration with thin profitability. Price reactions have alternated between gains and declines, indicating no consistent directional pattern to earnings news.
Key Terms
form f-3 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
SINGAPORE, May 15, 2026 (GLOBE NEWSWIRE) -- Davis Commodities Limited (OTC: DTCKF) (the "Company" or "Davis Commodities"), an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products, today announced its financial results for the fiscal year ended December 31, 2025.
Ms. Li Peng Leck, Executive Chairperson and Executive Director of Davis Commodities, commented, “In 2025, we delivered a strong recovery in revenue and continued to execute on our strategic priorities across both our core trading operations and new growth initiatives. Demand strengthened in key markets, particularly Africa and China, while higher trading volumes in sugar and rice supported a meaningful rebound in top-line performance. Although margin conditions remained pressured by elevated procurement costs, competitive pricing, supply chain disruptions and slower collections in certain markets, we continued to advance measures designed to enhance operating discipline and improve the quality of growth. Management continues to implement measures to improve liquidity, strengthen working capital management, and support long-term operational sustainability.
We were also encouraged by the early progress of our FMCG expansion strategy, which has begun to establish a broader, more consumer-facing growth platform for the Group. Following the rollout of this initiative, our FMCG products have entered major retail channels in Singapore, supporting brand development, recurring revenue opportunities and long-term business resilience. Looking ahead to fiscal year 2026, Davis Commodities will remain focused on operational execution, market expansion, and strengthening business fundamentals across its key growth pillars.”
Fiscal Year 2025 Financial Results
- Revenue was
$184.2 million for the year ended December 31, 2025, compared to$132.4 million for fiscal year 2024, representing an increase of39.2% . - Gross profit was
$2.9 million for the year ended December 31, 2025, compared to$2.3 million for fiscal year 2024, representing an increase of23.4% . - Loss from operations was
$5.2 million for the year ended December 31, 2025, compared to loss from operations of$3.7 million for fiscal year 2024. - Net loss was
$5.0 million for the year ended December 31, 2025, compared to net loss of$3.5 million for fiscal year 2024. - Basic and diluted loss per share was
$4.11 for the year ended December 31, 2025, compared to basic and diluted loss per share of$2.88 for fiscal year 2024. *
Revenue
Total revenue was
| For the years ended December 31, | ||||||||||||||||||||||||
| 2023 | % | 2024 | % | 2025 | % | |||||||||||||||||||
| US$'000 | ||||||||||||||||||||||||
| Sale of sugar | $ | 116,443 | 61.0 | $ | 86,599 | 65.5 | $ | 127,676 | 69.3 | |||||||||||||||
| Sale of rice | 26,440 | 13.9 | 18,680 | 14.1 | 34,080 | 18.5 | ||||||||||||||||||
| Sale of oil and fat products | 47,623 | 25.0 | 26,642 | 20.1 | 22,421 | 12.2 | ||||||||||||||||||
| Sale of others | 218 | 0.1 | 448 | 0.3 | 40 | 0.0 | ||||||||||||||||||
| Total revenue | $ | 190,724 | 100.0 | $ | 132,369 | 100.0 | $ | 184,217 | 100.0 | |||||||||||||||
In 2025, the Company’s operations in the sugar, rice and palm oil sectors experienced an increase in revenue, primarily driven by the expansion of its business in Africa and stronger demand in China. Despite this growth, the Company continued to face supply chain disruptions, rising costs and regulatory complexities that affected margins, cash flow and overall financial performance.
- Revenue from sales of sugar was
$127.7 million , an increase of47.4% from$86.6 million in 2024, primarily due to higher trading volumes. - Revenue from sales of rice was
$34.1 million , up82.4% from$18.7 million in 2024, reflecting stronger demand and increased sales activity. - Revenue from sales of oil and fat products was
$22.4 million , a decrease of15.8% from$26.6 million in 2024, reflecting softer demand and a shift in trading focus and product mix. - Revenue from sales of other products was approximately
$0.04 million , compared with$0.4 million in 2024, and primarily related to the Group’s initial entry into the fast-moving consumer goods market in the fourth quarter of 2025.
A breakdown of revenue by geographic regions for the fiscal years ended December 31, 2023, 2024 and 2025 is summarized below:
| For the years ended December 31, | ||||||||||||||||||||||||
| 2023 | % | 2024 | % | 2025 | % | |||||||||||||||||||
| US$'000 | ||||||||||||||||||||||||
| Africa | $ | 80,637 | 42.3 | $ | 68,448 | 51.7 | $ | 110,478 | 60.0 | |||||||||||||||
| China | 17,731 | 9.3 | 11,957 | 9.0 | 37,118 | 20.1 | ||||||||||||||||||
| Indonesia | 22,502 | 11.8 | 12,672 | 9.6 | 2 | 0.0 | ||||||||||||||||||
| Vietnam | 9,109 | 4.8 | 6,999 | 5.3 | 1,060 | 0.6 | ||||||||||||||||||
| Philippines | 19,372 | 10.2 | 2,850 | 2.2 | 2,832 | 1.5 | ||||||||||||||||||
| Thailand | 13,119 | 6.9 | 12,989 | 9.8 | 7,662 | 4.2 | ||||||||||||||||||
| Singapore | 18,889 | 9.9 | 10,105 | 7.6 | 10,259 | 5.6 | ||||||||||||||||||
| Other countries | 9,365 | 4.8 | 6,349 | 4.8 | 14,806 | 8.0 | ||||||||||||||||||
| Total revenue | $ | 190,724 | 100.0 | $ | 132,369 | 100.0 | $ | 184,217 | 100.0 | |||||||||||||||
- Africa remained the largest contributor, accounting for approximately
$110.5 million , or60.0% of total revenue, representing an increase of approximately$42.0 million , or61.4% , compared to the year ended December 31, 2024. - China recorded a significant increase to approximately
$37.1 million , or20.1% of total revenue, representing an increase of approximately$25.2 million , or210.4% , compared to the year ended December 31, 2024. - Indonesia contributed an insignificant amount in 2025, compared to approximately
$12.7 million in 2024, as the Group did not secure any import tenders during the year. - Revenue from Vietnam decreased to approximately
$1.1 million from$7.0 million , while Thailand declined to approximately$7.7 million from$13.0 million , reflecting reduced trading activity and regulatory constraints in these markets.
Cost of Revenue
Cost of revenue increased by approximately
- Cost of sugar sales increased by approximately
$41.4 million , or48.4% , to approximately$126.8 million . - Cost of rice sales increased by approximately
$14.1 million , or75.7% , to approximately$32.7 million . - Cost of oil and fat products decreased by approximately
$3.8 million , or14.8% , to approximately$21.9 million . - Cost of others remained insignificant at approximately
$0.1 million .
Gross Profit and Gross Margin
For the year ended December 31, 2025, gross profit increased by approximately
- Gross profit from sugar decreased to approximately
$0.9 million , and gross margin declined to0.7% from1.4% in 2024. - Gross profit from rice increased to approximately
$1.4 million , and gross margin improved to4.2% from0.5% in 2024. - Gross profit from oil and fat products decreased to approximately
$0.5 million , with gross margin declining to2.4% from3.6% in 2024. - Sales of others recorded a gross loss of approximately
$0.02 million , compared to a gross profit of approximately$0.05 million in 2024, mainly due to setup costs related to the newly established FMCG segment.
Operating Expenses
Operating expenses were
- Selling and marketing expenses decreased by approximately
$0.03 million , or1.7% , to approximately$1.7 million , mainly due to lower sales commissions. - General and administrative expenses increased by approximately
$2.1 million , or48.2% , to approximately$6.4 million , primarily due to higher legal and professional fees and a significant increase in allowance for expected credit losses. - Legal and professional fees increased to approximately
$2.1 million from$1.4 million in 2024, mainly due to additional professional services related to the filing of a Form F-3 and the implementation of a dual-class share structure, as well as consultancy fees of approximately$1.7 million , of which approximately$0.9 million was settled through share-based compensation. - Allowance for expected credit losses increased to approximately
$1.8 million from approximately$0.3 million in 2024, primarily due to slower collections from certain trade debtors and assessment of potential uncollectability of certain trade balances.
Other Income and Interest Expense
Other income was
Interest expense increased to approximately
Net Income
Taking into account all of the above, the Group recorded a net loss of approximately
Financial Condition
As of December 31, 2025, the Company had cash and cash equivalents of approximately
Net cash used in operating activities was approximately
Net cash used in investing activities was approximately
Net cash provided by financing activities was approximately
* All share and per-share data in this press release have been adjusted retrospectively, where applicable, to reflect the Company’s 1-for-20 reverse share split of its ordinary shares, which became effective on February 5, 2026.
About Davis Commodities Limited
Based in Singapore, Davis Commodities Limited is an agricultural commodity trading company that specializes in trading sugar, rice, and oil and fat products in various markets, including Asia, Africa and the Middle East. The Company sources, markets, and distributes commodities under two main brands: Maxwill and Taffy in Singapore. The Company also provides customers of its commodity offerings with complementary and ancillary services, such as warehouse handling and storage and logistics services. The Company utilizes an established global network of third-party commodity suppliers and logistics service providers to distribute sugar, rice, and oil and fat products to customers in over 20 countries as of the year ended December 31, 2025.
For more information, please visit the Company’s website: ir.daviscl.com.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may,” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure investors that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the U.S. Securities and Exchange Commission.
For more information, please contact: Davis Commodities Limited Investor Relations Department Email: investors@daviscl.com Celestia Investor Relations Dave Leung Email: investors@celestiair.com