SINGAOPORE (Feb 7): Neo Group says 3Q earnings surged to $2.08 million from $0.13 million a year ago which recorded a one-off loss on disposal of 14 Senoko Way for $5.2 million.
However, 3Q18 revenue fell 4.2% to $44.7 million from $46.7 million last year mainly due to the group’s food retail, supplies and trading divisions although this was offset by an increase in the food catering and food manufacturing divisions.
Advertising expenses were 43.6% lower at $0.83 million from $1.48 million a year ago, mainly due to a reduction in A&P activities.
During the quarter, other expenses declined by 60.2% or $4.65 million to $3.07 million, compared to $7.71 million in the previous year.
The group also recorded a one-off loss on disposal of 475 Tampines Street 44 #01-129 of $0.02 million in 3Q18.
As at Dec 31, 2017, the group’s cash and cash equivalents stood at $9.9 million.
Neo Kah Kiat, founder, chairman and CEO of Neo Group says, “With our Food Manufacturing and Food Retail segments successfully in the black, we have shifted our focus to chart a strong turnaround for our Supplies and Trading business. Within this segment, we continue to engage in active efforts to realign procurement practices and streamline operations, as well as reduce storage and logistics costs."
Shares in Neo Group closed at 66 cents on Wednesday.
