Mewah's Q2 profit jumps 63.4% to US$3.1m

MAINBOARD-LISTED Mewah International on Friday reported a 63.4 per cent increase in its second-quarter net profit to US$3.1 million, as it recorded improved operating margin per tonne for both its bulk and consumer pack segments.

For the three months ended June 30, 2017, earnings per share was 0.21 US cent, up from 0.13 US cent a year ago. Mewah's H1 2017 net profit rose 46.7 per cent to US$7.1 million.

In a Singapore Exchange filing, Mewah said: "After surging by over forty percent to 3,200 ringgits at the end of 2016, crude palm oil prices retreated back to 2,900 ringgits at the end of the first quarter of this year. With improvement in production outlook, prices eased further to end the quarter at 2,600 ringgits. The expectation of falling prices resulted in buyers in the bulk segment delaying their purchases to buying just in time. This put pressure on sales volumes for the group and for the bulk segment.

"However, as the prices fell, consumer pack segment witnessed strong demand from buyers in Africa and Middle East, ahead of Ramadan season. Current low inventory levels have supported the refining margins for the industry."

The company, which is an agri-business with refineries and processing facilities in Malaysia and Singapore, posted an 11.6 per cent drop in Q2 revenue to US$737.6 million, with its sales volume declining 17.6 per cent to 926,000 tonnes for the second quarter.

Mewah's H1 revenue dropped 5.2 per cent to US$1.5 billion.

An interim exempt dividend of 0.30 Singapore cent per ordinary share for Q2 has been proposed.

Mewah last traded on Thursday and closed at S$0.30.