Super's second-quarter earnings less than stirring

Sales have dipped for Super's branded consumer product segment as well as its food ingredient segment.
Sales have dipped for Super's branded consumer product segment as well as its food ingredient segment.PHOTO: LIANHE ZAOBAO

Net profit falls by nearly a third as sales in the Philippines and eastern Europe remain slow

Instant food and beverage manufacturer Super Group has reported a 30 per cent slide in second-quarter net profit to $10.5 million as both branded consumer product and ingredient sales fell.

Revenue for the period ended June 30 declined 5 per cent to $125.5 million, the company said.

Super attributed the slide to slow sales in the Philippines and eastern Europe - the same factor it blamed for weaker first-quarter results.

Earlier this year, Super announced a joint-venture agreement to distribute its products in Russia under the brand name Golden Eagle, as part of its eastern Europe expansion plans.

The firm's sales performance was lower in its branded consumer product segment, which sells coffee, tea and cereal products, as well as its food ingredient segment, which sells soluble coffee powder and creamer.

  • AT A GLANCE

  • NET PROFIT:

    $10.5 million (-30%)

  • REVENUE:

    $125.5 million (-5%)

  • DIVIDEND PER SHARE:

    1 cent (unchanged)

Quarterly earnings per share dipped to 0.94 cent, from 1.35 cents a year earlier. Net asset value per share rose slightly to 44.9 cents as at June 30 from 44.62 cents as at Dec 31 last year.

Super said currency fluctuations present a major risk in the year ahead. This quarter, it reported a $1.1 million foreign exchange loss because of the depreciation of the United States dollar against the Singapore dollar. Although Super said that it would keep a close eye on foreign currency volatility, it expects its markets in Myanmar, Malaysia and eastern Europe to continue taking a hit from the strong US dollar.

It added that raw material costs will be a challenge.

For the six months, Super's net profit dropped 27 per cent to $24.13 million and revenue came in 4 per cent lower at $247.2 million.

The group had a rocky year in 2014, with its profits plummeting by 58 per cent year-on-year this time last year.

An interim dividend of one cent per ordinary share has been declared, unchanged from last year.

Annabeth Leow

A version of this article appeared in the print edition of The Straits Times on August 12, 2015, with the headline 'Super's second-quarter earnings less than stirring'. Print Edition | Subscribe