SINGAPORE (Feb 9): Neo Group, the food caterer, saw 3Q17 earnings fall to $0.1 million from $4.8 million in the absence of a $4.3 million one-time gain recognised in 3Q16 from bargain purchase on acquisition of subsidiaries.
Revenue for the three-month period ended Dec, however, grew 23.4% to $46.7 million from $37.8 million a year ago. This was mostly lifted by a $7.6 million rise in revenue from the Food and Catering Supplies business, which started supplying and trading frozen meat to a local third-party customer that contributed to the $7.7 million segment revenue reported this quarter compared to $0.1 million in 3Q16.
While the Food Catering business reported 6.5% lower revenue to $16.8 million in the absence of the SG50 boost last year, the Food Retail business’ topline rose 5.5% to $4.6 million due to new outlets as well as promotions launched during the quarter.
As a result of new products that were successfully launched during the quarter, the Food Manufacturing business reported a 2.9% growth in revenue to $12.6 million in 3Q17 from $12.2 million a year ago.
The Food Trading business, which contributed three months of revenue this quarter compared to two months in 3Q16, reported revenue of $4.7 million in 3Q17, 59.6% higher than the $2.9 million in 3Q16.
The group expects to remain profitable for FY17 ending March.
Shares of Neo Group closed flat at 57.5 cents.
