SINGAPORE (Nov 10): Neo Group reported a loss of $0.5 million for 2Q17/18 compared to earnings of $3 million a year ago in 2Q16/17.
The catering group says this was largely due to the absence of a $1.82 million one-off gain on the disposal of assets classified as ‘held for sale’ in 2Q16/17.
Revenue for the quarter grew 27.5% to $45.3 million from $35.5 million previously on higher revenue from the group’s Supplies and Trading business, which increased significantly after registering contributions from Neo Group’s recently-acquired subsidiaries, U-Market Place Enterprise and Hi-Q Plastic Industries.
Food Manufacturing business grew 2.8% to $11.4 million over the quarter as well, mainly as a result of rebranding and marketing efforts for the group’s product offerings over the quarter under review.
Food Catering and Food Retail business revenue, however, fell by 1.9% and 2.8% respectively, with the latter being mainly attributable to the closure of non-performing outlets.
For the half-year ended Sept, Neo Group has announced a loss of $1.2 million compared to earnings of $0.4 million in 1H17, although revenue for 1H was up 27.4% to $85.9 million on higher contributions across most of its business segments.
The group says it will continue to remain on the lookout for inorganic growth opportunities via merger and acquisitions (M&As), which will allow it to either strengthen its market leadership in food catering, or propel up the value chain to better differentiate itself as a fully-integrated food solutions provider.
“We believe that we are in a good position to capitalise on synergies across the value chain to drive revenue growth. This includes initiatives which would leverage on our trading and distribution networks to increase global sales and marketing network,” comments Neo Kah Kiat, founder, chairman and CEO of Neo Group.
Shares in Neo Group closed flat at 66 cents on Friday.
