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Super Group's Q4 profit up 15% on gain from property sale

INSTANT coffee mix maker Super Group found a picker-upper in property sales, which carried its fourth-quarter net profit into growth territory despite the ongoing sluggishness of its core business.

Profit attributable to shareholders rose 15 per cent to S$25.9 million, or 2.32 Singapore cents per share, for the three months ended Dec 31, 2014. For the whole of 2014, net profit was down 31 per cent at S$68.8 million, or 6.17 Singapore cents per share.

The company is proposing a final dividend of 2.1 cents per share. The shares closed at S$1.185 on Thursday before trading was halted for the announcement of the results. Trading in the shares resumes at 2.30pm on Friday.

Fourth-quarter revenue was flat at S$153.7 million, while operating profit was down 12 per cent at S$20.5 million.

But the company recorded a S$6.5 million gain on disposal of its property at Chin Bee Crescent during the quarter, raising net other income to S$9 million from a year-ago S$2.4 million.

That one-time bump was enough to give the quarter a higher net profit.

Super said it had stepped up marketing in core markets, including Thailand and Malaysia, in the second half of 2014 for its consumer business. In the food ingredients segment, Super is looking to roll out more premium products.

"Raw material costs and currency fluctuations will affect the group's operating performance," Super stated. "Management is familiar with these challenges and will take appropriate actions to mitigate their impact on the group's businesses," it said.