SINGAPORE (Sept 28): Khong Guan, the flour miller and manufacturer of biscuits, saw FY17 earnings ended July surge to $1.3 million from $58,000 a year ago.
This was mainly due to an 8.0% decrease to $47.8 million in expenses from the purchases of inventories in FY17. This was $4.1 million lower than the $51.9 million for purchases of inventories in FY16.
Full-year revenue fell 2.7% to $57.1 million in FY17, from $58.7 million a year ago.
This was due to a $4.1 million decrease in revenue from its core business – the trading of wheat flour, edible oil, biscuits and other consumer products – to $53.1 million. The decline was partially offset by a $2.5 million increase in sales of short-term investments.
As at end July, cash and cash equivalents stood at $14.7 million.
Khong Guan has declared a first and final dividend of 3 cents per share, the same as a year ago.
Looking ahead, the group says its two trading subsidiaries will continue to review and develop their own marketing strategies in the light of intense competition.
Meanwhile, its associate in Malaysia should be able to improve its profitability due mainly to the expected increases in the export of oats products by its oats milling subsidiary.
Shares in Khong Guan closed flat at $2.00 on Thursday.
