SINGAPORE - Food caterer Neo Group narrowed its net loss in the first quarter by 74 per cent to S$652,000 from S$2.5 million a year ago.
Revenue for the three months to end June grew 27.3 per cent to S$40.6 million from S$31.9 million for the year-ago quarter lifted by stronger performance across most business segments, notably the turnaround of its food manufacturing operations.
As part of its turnaround exercise, the segment was recently relocated to the larger 22 Senoko Way facility that Neo Group said resulted in significant cost savings, especially in rental, increased capacity to support business growth and greater automation.
On its core food catering business segment, Neo Group said it will explore opportunities to enter untapped market segments, such as Gourmetz's niche in the elder-care and childcare segments, where there is larger growth potential and relatively higher margins. The segment will continue to expand its pool of venue partners and corporate clients.
Maiden contribution from new subsidiary, Hi-Q Plastic Industries Sdn Bhd, that was acquired in April 2017, as well as revenue contributed by U-Market Place Enterprise led to a 195 per cent surge revenue for the supplies and trading segment to S$12.4 million compared to S$4.2 million in the year-ago quarter.
Said group founder, chairman and CEO, Mr Neo Kah Kiat: "Notably, despite the first financial quarter typically being our slowest due to seasonality, we have continued to sustain our growth through our diversified revenue streams, bearing testament to the merits of our vertical integration strategy."
No dividend was declared for the period.