SunMoon, in response to Singapore Exchange queries on its third-quarter results, said its average trade receivables turnover of 78.4 days - longer than the 15 to 60 days it grants its customers for credit sales - was due to longer repayment periods for an interested party, Shanghai Yiguo E-commerce (Yiguo), and its related companies. A few customers were also slow on payment. Excluding these, trade receivables turnover would have been 45 days.
For the quarter, SunMoon had made $14.3 million in interested party transactions to Yiguo, which had an average collection period for sales of 108 days. Sales to Yiguo made up 70 per cent of the group's third-quarter revenue.
The fruits supplier clarified that a $187,000 provision was related to a slow-paying customer on credit sales. It said about 44 per cent of total trade receivables as at Dec 31, 2018 had been collected as at Feb 28, 2019.
It also said it suffered a gross loss of $456,000 due to avocado being sold below cost during the quarter, as a result of depressed prices in China's competitive market. The weaker yuan hurt its gross margin as purchases for China were made in US dollars, while sales were in yuan.
Del Monte Pacific
Lower one-off expenses for its United States unit helped food and beverage company Del Monte Pacific deliver a third-quarter net profit of US$2.6 million (S$3.5 million), reversing a net loss of US$38.4 million for the same period last year. Loss per share (LPS) narrowed to 0.12 US cent from a LPS of 2.2 US cents for the previous year. Taking into account preference dividends, earnings per share was 0.13 US cent for the quarter, compared to LPS of 1.97 US cents a year ago.
The group, which is listed in Singapore and the Philippines, said that without "one-off" adjustments - for both years for its US subsidiary - for plant closures and tax changes, its recurring net income of US$3 million would have been lower than last year's recurring net income of US$3.4 million. In all, the group had sustained one-off expenses net of tax of US$0.5 million for the third quarter of fiscal 2019, compared with US$41.8 million for fiscal year 2018, which was mainly due to written-off deferred tax assets.
For the three months ended Jan 31, revenue dropped 11.8 per cent to US$528.7 million from the previous year. This was primarily due to the divestiture of the Sager Creek vegetable business in September 2017, lower sales in the US, lower exports of processed pineapple items and lower pricing of juice concentrate.