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Super Group's Q2 profit falls 7% on triple whammy
THE downturn in regional markets, weak consumer sentiments and depressed regional currencies continued to take a toll on the earnings of instant food and beverage maker Super Group in the second quarter.
Net profit slipped 7 per cent to S$9.8 million for the three months to June 30, while revenue fell 8 per cent to S$115 million, when compared with year-ago figures from the same period.
This translates to earnings per share of 0.88 Singapore cent, down from 0.94 Singapore cent previously.
The fall in revenue was due to lower sales from its branded consumer (BC) and food ingredients (FI) business segments, mainboard-listed Super said in a Singapore Exchange filing on Thursday.
Sales from its BC segment declined 6 per cent to S$75 million, while its FI segment posted a 12 per cent drop to S$40 million.
Coffee remains as its core revenue driver, Super said, as it contributed 78 per cent of BC revenue, down marginally from 79 per cent previously.
A dividend of one Singapore cent per share has been declared for the quarter, in line with the same period a year ago.
Said Super chairman and managing director David Teo: "With continued regional markets downturn, weak consumer sentiments and depressed regional currencies, our consumers have become more prudent with their spending and this has affected demand across most segments of consumer goods including our instant food and beverage products.
"Sales revenue was also adversely impacted by the depreciation in regional currencies in this challenging business environment."
The counter closed one cent up at 78.5 Singapore cents before the results were released.