Super Group posts 24% drop in Q1 earnings as sales, margins fall

SINGAPORE - Instant food and beverage maker Super posted lower first-quarter earnings on Tuesday, on the back of dipping sales and margins.

Net profit for the three months to March 31 shrank 24 per cent to $13.6 million, compared with the $17.8 million from the same period a year ago.

Revenue slipped 2 per cent to $121.7 million owing to lower branded consumer sales, though partially offset by higher food ingredients sales, said Super in a statement on Tuesday.

Branded consumer sales declined 5 per cent $84.2 million, while food ingredients sales grew 4 per cent to $37.4 million due to higher sales into the South-east Asia markets.

"Despite growth in sales contribution from core markets such as Myanmar, China and Thailand, lower sales into certain markets such as the Philippines, Malaysia and Eastern Europe resulted in the decrease in branded consumer sales," said the group.

Gross profit margins shed 2 percentage points to 36 per cent, as food ingredients sales - which carry a lower gross profit margin - took up a higher composition of overall revenue.

The group's pre-tax earnings, however, increased to $24.6 million as it "continued to enhance its income generating capability".

Earnings per share came in at 1.22 cents, down from the 1.6 cents previously.

Net asset value per share rose to 47.37 cents, compared to 43.11 cents previously.

The group said that it expects market conditions to "remain competitive" in the next 12 months, and that its operating performance will likely be affected by raw material costs and currency fluctuations.

Super Group shares closed one cent up at $1.345 on Tuesday.