SINGAPORE (May 8): Jeweller Soo Kee Group posted a 46.3% fall in 1Q17 earnings to $1.4 million from a year ago due to higher material costs.
Revenue came in 11.3% higher at $40.8 million mainly from sales of bullion by the group’s subsidiary, SK Bullion, which contributed $6.9 million to the group’s total revenue.
However, material costs increased 24.7% to $25.1 million in 1Q17.
The more than proportionate increase in material costs as compared to the increase in revenue in the respective periods was mainly due to the change in product mix following the acquisition of the group’s bullion business in April 2016, says Soo Kee Group.
As at end March, the group’s balance sheet remained healthy with cash and cash equivalents amounting to $20.8 million.
Daniel Lim, Executive Director and Chief Executive Officer, says, “The retail sector is expected to remain under pressure amid a soft economic environment... Besides strengthening our retail presence locally, we also seek to expand our distribution network in the region. Our intention to enter into the Thailand market through our partnership with Aurora Design Co. marks our first step, as we remain on the lookout for new business channels to enhance our market leadership regionally.”
Shares of Soo Kee Group closed at 13 cents on Monday.
