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Super Group net profit down 24% to S$13.6m
Instant food and beverage maker Super Group reported a net profit of S$13.6 million for its first quarter ended Mar 31, 2015, down 24 per cent from S$17.8 million a year ago.
Revenue dipped 2 per cent to S$121.7 million from S$124.6 million a year ago.
The net profit drop was because of lower gross margins due to the higher composition of food ingredients sales, as well as an increase of effective tax rate to 20 per cent from 10 per cent of profit before tax a year ago, because of the expiry of a tax incentive enjoyed by an overseas subsidiary.
"Management expects market conditions to remain competitive in the next twelve months. Raw material costs and currency fluctuations will affect the group's operating performance," Super Group said.
"Management, however, is familiar with these challenges and will take appropriate actions to mitigate their impact on the group's businesses."
Super Group ended trading on Tuesday at S$1.345, up a cent or 0.7 per cent, before results were out.