Super Group reports 15% dip in Q1 net profit to S$11.6 million

SINGAPORE - Beverage maker Super Group said its first quarter net profit fell by 15 per cent to $11.6 million.

Turnover for the three months to March 31 fell by 2 per cent to $119.4 million, on lower sales from branded consumer and food ingredients business.

Branded consumer sales dipped 2 per cent to $83 million while food ingredient sales dropped 3 per cent to $36.5 million.

Weaker regional currencies, such as the Thai baht and Malaysia ringgit, had adversely impacted on the group's reported revenue, when sales denominated in these currencies were converted to Singapore dollar for consolidation purposes, Super explained in a statement.

Earnings per share eased to 1.04 cents from 1.22 cents previously while net asset value per share shrank to 46.22 cents compared to 46.8 cents as at Dec 31.

During the quarter, gross profit rose 2 per cent to $44.8 million and gross profit margin inched up from 36 per cent to 37 per cent, largely due to lower input costs from key raw materials such as coffee beans and palm kernel oil.

Despite the increase in gross profit, operating profit dropped by 5 per cent to $15.6 million owing to higher selling and distribution expenses as well as general and administrative costs.

Intensified advertising and promotional activities to support the roll-out of new products in certain key markets and marketing activities organised in conjunction with the 60th anniversary of its trademark brand OWL contributed to the increase in selling and distribution expenses.

Super said that it remains stout in pursuing its strategy of branding, innovation and diversification in the midst of continued economic volatility and geo-political uncertainty .

"In the year ahead, the phased roll-out of more innovative new products targeting at the rising middle-income populace in Asia, will help towards uplifting earnings and business growth," it added.