Pacific Andes suffers 61% drop in first half earnings on non-renewal of deals
Published on May 26, 2014 9:57 PM
SINGAPORE - Frozen seafood supplier Pacific Andes International Holdings said its first half net profit fell by 61.4 per cent to HK$85.7 million (S$13.8 million), mainly due to an increase in finance costs and the termination of long term supply agreements.
Its fishery and fish supply division chalked up a 20.1 per cent increase in revenue to HK$2.54 billion in the first six months, driven by a 540 per cent surge in revenue from the enlarged Peruvian fishmeal operations.
This was partially offset by a 53 per cent decrease in revenue from the contract supply business due mainly to lower sales volume following the termination and non-renewal of the long term supply agreements.
Although the group participated in the spot market following the termination of the agreements, it did not trade on occasions when the spot prices of certain products were unfavourable.
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