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Mewah's Q4 profit almost triples on higher sales volume, better average selling price

HIGHER sales volume and improved average selling price lifted palm oil processor Mewah International's fourth-quarter results.

Net profit for the three months ended Dec 31, 2016, leapt 197.9 per cent to US$5.4 million from the previous year - more than triple the corresponding quarter last year but lower than US$10.5 million for the last quarter, the group said in a Singapore Exchange filing on Monday evening.

Revenue climbed 37 per cent to US$740 million from the previous year. The rise in revenue was due to a 9.9 per cent increase in sales volume and well supported by 24.6 per cent higher average selling prices, it said.

Earnings per share increased to 0.36 US cent from 0.12 US cent in the previous year. Net asset value per share was 32.57 US cents as at Dec 31, against 32.47 US cents three months ago.

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Overall for 2016, net profit rocketed 220.2 per cent to US$20.8 million from a low base of US$6.5 million in 2016.

Revenue for the full-year climbed 13.8 per cent to US$3.04 billion from 2015's US$2.67 billion, supported by 8.8 per cent higher sales volume and 4.6 per cent higher average selling prices.

A final dividend of 0.55 Singapore cent per share has been proposed. Together with an interim dividend of 0.30 Singapore cents, total dividend is 0.85 Singapore cents per ordinary share for the full year.

The group said: "Going forward, production and inventory levels are expected to recover. Current premiums for spot and nearby months and lower prices for forward month signal the expected rebound in production and the easing off of the prices.

"With its large and reliable supplier base in Malaysia, large-scale refineries, and widespread customer base at the destination markets, the group hopes to continue leveraging its consolidated and competitive position."

Mewah shares closed at 34.5 Singapore cents on Monday.

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