GP Industries earnings up amid battery business competition

SINGAPORE - Electronics manufacturer GP Industries reported a marginal increase in its third quarter net profit after revenue growth came in largely flat.

Revenue for the three months to Dec 31 was S$270.6 million, down 0.4 per cent year on year. This was further impacted by higher distribution costs - up 25.6 per cent to S$33.8 million - due to marketing expense forked out for majority owned GP Batteries.

But the company also reaped an exchange gain of S$9.2 million, compared with just S$1.1 million a year ago.

As a result, net profit came in at S$8.1 million, up 0.8 per cent year on year, a results announcement on Thursday (Feb 9) showed.

GP Industries owns about 65 per cent of GP Batteries, which is also listed here. The battery maker reported a 1.9 per cent increase in revenue to S$196.7 million earlier in the week, citing slow global demand and price competition.

GP Industries acknowledged that the battery business competition will remain keen, but it stressed that new factories coming on stream in Malaysia and Vietnam will contribute to revenue growth.

GP Industries shares last closed at 56.5 cents.