SINGAPORE (Feb 24): Soo Kee Group reported $2.9 million in earnings for the fourth quarter ended Dec 31, a 23.4% improvement compared to the $36.4 million of earnings announced a year ago.
This was largely due to 50.2% growth in 4Q revenue to $54.7 million from $36.4 million in the previous year on the back of higher sales by the group’s subsidiary, SK Bullion, which contributed about $19 million during the quarter.
While material costs grew 91% to $36.8 million in the quarter following the acquisition of the bullion business, employee benefits expense and other expenses notably declined by 13.1% and 11.8% to $4.5 million and $7.4 million respectively as a result of lower headcount, the absence of IPO-related expenses, as well as lower advertising and promotion expenses and rental expenses.
The group’s FY16 earnings however declined 22.6% to $6.5 million from $8.3 million in FY15, despite a 26.9% growth in revenue to $176.8 million.
Soo Kee has proposed a final cash dividend of 0.5 cent per share for FY16, subject to shareholders’ approval at the annual general meeting of the Company to be convened.
“Despite the challenging operating environment, we continue to drive top-line growth by staying focused on introducing new products as well as new initiatives to meet the demands of the evolving retail landscape and to enhance our market leadership in the industry,” comments Daniel Lim, Soo Kee’s executive director and CEO.
Shares of Soo Kee closed 8.8% higher at 16 cents on Friday.
