SINGAPORE (Nov 10): Hanwell Holdings has announced 3Q17 earnings of $3.9 million, representing a 4.2% decline from its earnings of $4.1 million in the same period a year ago on higher expenses.
Revenue for the quarter grew 21.2% to $119.9 million from $98.9 million a year ago on stronger demand in the Packaging Business, which was partially offset by lower revenue from the Consumer Business segment due to the closure of all franchise outlets.
In line with the higher revenue, gross profit grew 18.2% to $27.8 million from $23.5 million previously.
Administrative expenses however grew 16.9% to $8.6 million from $7.3 million a year ago due to higher staff incentives, as a result of the better performance of the Packaging Business in the current year.
At the same time, other expenses grew to $1.1 million from a gain of $0.9 million previously due to an exchange loss of $0.1 million over the recent quarter, as compared to an exchange gain of $1.1 million in 3Q16.
On expectations of a soft trading environment for the fast-moving consumer goods (FMCG) industry over the next three months, Hanwell says it will continue to o develop new products and look out for new business opportunities to enhance its sales performance in the year ahead.
The management says it will exercise prudence in its procurement and inventory management of key products to protect margins for FY17.
While expecting the operating environment for the Packaging Segment to remain challenging due to volatile raw material prices and uncertain economic conditions, the division will remain focused on its initiatives to increase productivity, enhance operational efficiencies and manage its costs, adds the group.
Shares in Hanwell closed flat at 32 cents on Friday.
