SINGAPORE - Singapore-based instant food and beverage maker Super Group saw its third-quarter earnings sink by nearly half to $10 million, on the back of slowing sales and higher costs.
For the three months ended Sept 30, the group logged a revenue of $129.5 million, down 3 per cent.
Earning per share stood at 0.89 Singapore cent, a 47 per cent drop from the 1.68 cents previously.
"The macro-economic environment continued to be challenging (in the third quarter), marked by higher raw material costs, particularly that of palm kernel oil, as well as stiffer competition," said Super in a statement on Monday.
Branded consumer sales declined 6 per cent year-on-year to $82 million, in tandem with lower sales in Singapore, China and the Philippines.
Food ingredients sales, however, increased 3 per cent to $47.5 million, boosted by increased demand in Asia, particularly in the Philippines.
Super Group's branded consumer segment sells instant coffee, tea and cereal.
Still, the group expects "gradual recovery" in certain core markets within the branded consumer segment in the fourth quarter and beyond, and is aiming diversify geographically and move into higher margin products within the food ingredients market.
Chairman and managing director David Teo said: "The current slowdown has been an opportune time for the group to sharpen our strategies so that we can position ourselves to move ahead when the upturn comes.
"Super's long-term prospects remain positive underpinned by demand from emerging markets. Our strategy of branding, product innovations and regional expansion is key to our objective of delivering sustainable growth..."
Net asset value per share was 41.37 cents as at Sept 30, down from 41.87 cents as at Dec 31 last year.