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Super Group posts flat Q3 with S$7.4m profit, sees competitive market ahead
BEVERAGE mix maker Super Group posted flat earnings growth in the third quarter amid slower food ingredient sales in South-east Asia, the company announced on Monday after the market closed.
Net profit eased slightly to S$7.4 million, or 0.67 Singapore cent per share, for the three months ended September. Nine-month net earnings slipped 9 per cent to S$28.8 million, or 2.58 Singapore cents per share.
Revenue declined by one per cent during the quarter to S$119.5 million as food ingredient sales shrank 5 per cent to S$40.0 million due to a slowdown in South-east Asia, especially in Indonesia and the Philippines. Branded consumer sales, however, increased by one per cent to S$79.5 million over the same period on higher sales in South-east Asia, particularly Thailand, said the maker of three-in-one coffee sachets.
Looking ahead, Super expects "competitive" market conditions over the next 12 months, as well as some volatility in raw material costs and exchange rates.
Super is currently the target of a S$1.30 per share cash takeover offer by Dutch tea and coffee group Jacobs Douwe Egberts (JDE). JDE has already secured acceptances from Super's major shareholders who hold a combined 60 per cent stake. Those shareholders comprise the families of founders David Teo and Ronald Te; tycoon Sam Goi and his Tee Yih Jia Food Manufacturing company; and Yeo Hiap Seng unit YHS Investment.