CHINA Fishery Group has suffered a 42.7 per cent drop in first quarter net profit to US$13.6 million (S$16.7 million).

Group revenue for the three months to Dec 28 fell by 14.1 per cent to US$108.1 million, largely due to lower sales contribution from the China Fishery fleet, which mainly focus on mackerel fishing and processing.

The significant reduction in sales generated by the fleet resulted in a decline in overall gross margin from 30.5 per cent to 26.2 per cent.

Net margin decreased from 18.9 per cent to 12.6 per cent.

Earnings per share slumped by 42.9 per cent from 2.33 US cents to 1.33 US cents.

Net asset value per share inched up by one US cent to 81 US cents compared to Sept 28.

China Fishery group managing director Ng Joo Siang said the first quarter, a traditionally low fishing season, was affected by a significant reduction in the total allowable catch of Peruvian Anchovy.

"The lower-thanexpected processing volume in the North Atlantic Ocean last quarter also meant a lower level of inventory carried forward for sale in this quarter."

Management is confident of achieving continued profitability for the next quarter.