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Super Q3 profit falls 26% as SG50 sponsorship, promotions hit margins
SUPER Group's third-quarter net profit fell 26 per cent to S$7.4 million as its operating margins shrank.
The instant-coffee maker's net earnings were 0.67 Singapore cent per share for the three months ended September. For the first nine months of the year, net profit also fell 26 per cent to S$31.6 million, or 2.83 Singapore cents per share.
Super shares slipped 3.7 per cent or 3.5 Singapore cents to close at 90.5 Singapore cents on Thursday before the results were announced.
Revenue fell 7 per cent to S$121.0 million during the quarter as food ingredients experienced lower sales in South-east Asia.
Expenses related to selling and distribution and to general and administrative purposes increased by 3 per cent, however, leading to a sharper decline in operating profit. That spike in expenses was partly due to Super's sponsorship and promotional activities surrounding the SG50 celebrations for Singapore's 50th year of independence. The company also carried out a promotional campaign for its Charcoal Roasted White Coffee product on TV and Youtube.
The company expects market conditions to remain "competitive" in the next 12 months, with volatility in raw material costs and exchange rates.