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TT International sinks deeper into the red with S$9.63m Q3 loss
TT International sank deeper into the red in the third quarter ended Dec 31, 2016, with a net loss of S$9.63 million, after posting a net loss of S$6.71 million a year ago.
This was due mainly to non-cash expenses such as depreciation and accretion of interests on liabilities under the scheme of arrangement.
Revenue slipped 18.3 per cent to S$88.5 million, mainly due to reduced sales to overseas customers as a result of lower customer spending due to weakened global economic conditions.
TT International is being restructured under a scheme of arrangement since 2010.
"The Board is of the view that the group will be able to meet its short-term obligations as and when they fall due despite the negative working capital position as the company continues exploring various possibilities in securing the necessary funding to discharge the Scheme and provide the group with additional working capital," it said on Tuesday night.
But TT International flagged that the operating environment remains challenging amid weak retail industry and volatile exchange rates in major markets, increasing margin pressures, rising costs across geographical regions, as well as manpower tightening policies in Singapore.
The group had launched its new "shop-in-shop" concept by introducing Japanese Supermart brands Gyomu Super inside its BIG BOX Hypermart, and the niche display of products by country of origin.
TT International added: "The group will continue to focus on building up its retail business, strengthen BIG BOX operations to increase its market share and the expansion of its Indonesian operations. These will contribute to the group's financial performance in the long run."