SINGAPORE (Nov 10): Sino Grandness Food Industry Group posts a 16.3% rise in 3Q earnings to RMB 193.3 million ($39.6 million), from RMB 166.2 million a year ago.
In a filing to SGX on Friday, the Shenzhen-based producer and distributor of juices, canned fruits and vegetables says this was mainly due to higher sales in domestic canned products and beverage products.
3Q17 group revenue grew 10.8% to RMB 1.23 billion, from RMB 1.11 billion a year ago.
Gross profit dipped 1.2% to RMB 451.5 million in 3Q17, on the back of a 4.4 percentage point decline in gross profit margin to 36.8%.
The lower margin was largely due to higher cost of raw materials for the canned products segments and a change in product mix for the beverage segment.
Earnings per share (EPS) in 3Q17 decreased to 4.7 cents, from 5.1 cents a year ago, mainly due to an enlarged share base upon completion of a rights issue.
As at end September, cash and cash equivalents stood at RMB 422.8 million.
“Going forward, we will continue to invest in various advertising and promotional activities as well as sales and marketing initiatives in order to enhance our brand visibility and expand our distribution network,” says Huang Yupeng, chairman and CEO of Sino Grandness, adding that the group remains optimistic about its operating performance in FY17.
Shares of Sino Grandness closed 1 cent higher, or up 4.8%, at 22 cents on Friday.
