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Mewah International's Q2 net profit down 81.4%

AGRI-BUSINESS Mewah International reported a net profit of US$577,000 for its second quarter, down 81.4 per cent from US$3.1 million a year ago largely due to foreign exchange losses.

Revenue ticked up 0.7 per cent to US$742.4 million, due to an improvement in the bulk segment.

Earnings per share was 0.04 US cents, down from 0.21 US cents previously.

A dividend of 0.22 Singapore cents was declared for the quarter, compared to 0.30 Singapore cents a year ago.

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In an announcement by the group, it said that Q2 is its seasonally weakest quarter and it was no exception this time.

In its outlook, the group said palm oil prices would remain challenging  due to “excess supply from both Indonesia and Malaysia”.

However, the group said that it remains optimistic that it will be able to find demand for its existing products and withstand lower demand conditions, due to the investments it has made in the past several years.

“The group will also continue to make investments in our existing business so as to be able to be more resilient in combating the cycles inherent in the business,” said Mewah.