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Yeo Hiap Seng Q3 net profit almost triples on currency gains
Yeo Hiap Seng's third-quarter net profit almost tripled as currency gains offset a sales decline, the drinks maker announced on Tuesday after the market closed.
Net profit for the three months ended September rose to S$9.4 million, or 1.64 Singapore cents per share, from S$3.1 million a year ago. For the first nine months of the year, cumulative net profit rose 44 per cent to S$22.6 million, or 3.93 Singapore cents per share.
Yeo Hiap Seng shares did not trade on Tuesday, but were last bid at S$1.315 and offered at S$1.39.
The company recorded S$4.7 million in gains from currency translation in the latest quarter, a sharp improvement from the S$1.0 million loss from the same line item a year earlier.
The currency effect helped to offset a 4.6 per cent decline in revenue, to S$109.5 million, during the third quarter.
Yeo Hiap Seng said it expects food and beverage margins to come under pressure over the next 12 months because of competitive selling prices in its markets, higher initial operating costs for new production lines and uncertainty in raw material prices. Regional currency volatility will also affect results.
"Overall, the group's performance is expected to remain satisfactory," the company said.