Third-quarter earnings were flat at instant food and beverage manufacturer Super Group as sales of food ingredients slowed in South-east Asia.
Net profit for the three months to Sept 30 came in at $7.41 million, little changed from the $7.42 million in the same period a year ago.
This was due mainly to lower interest income and government grants received during the quarter, compared with previously, Super Group said in a statement yesterday.
Revenue edged down 1 per cent to $119.5 million on lower sales of food ingredient, which decreased 5 per cent to $40 million, largely due to lower turnover in South-east Asian markets, primarily Indonesia and the Philippines. This was partially offset by contributions from new markets, such as Europe and the Middle East.
On the other hand, branded consumer sales grew 1 per cent to $79.5 million on higher turnover in the South-east Asian markets, particularly Thailand.
Net profit for the nine months to Sept 30 shrank 9 per cent to $28.8 million, while revenue eased 4 per cent to $353.9 million.
AT A GLANCE
NET PROFIT: $7.4 million (not meaningful)
REVENUE: $119.5 million (-1%)
During the quarter, gross profit margins rose by two percentage points to make up 35 per cent of total sales revenue, due in part to a higher composition of branded consumer sales, which carry a higher gross profit margin.
Profit from operating activities was up by 17 per cent to $10.6 million on higher gross profit and lower selling and distribution expenses, though partially offset by increased general and administrative expenses. Earnings per share for the quarter was unchanged at 0.67 cent, while net asset value per share was lower at 45.63 cents as at Sept 30, compared with the 46.8 cents as at Dec 31 last year.
Super Group said it expects market conditions to "remain competitive" in the next 12 months, as volatility in raw material costs and currency fluctuations will likely affect its operating performance.
Super Group is being bought by Dutch beverage giant Jacobs Douwe Egberts (JDE) in a $1.45 billion deal, or a $1.30 per share cash takeover offer.
JDE has already secured acceptances from Super Group's major shareholders who hold a combined 60 per cent stake, including the 23.95 per cent held by founder David Teo and his wife June Te, and 11.69 per cent held by YHS Investment.
Super Group shares closed half a cent or 0.4 per cent lower at $1.265 yesterday, before the results were announced.