SINGAPORE (May 30): SunMoon Food Company reported a net profit of $0.36 million for FY18 ended March compared to a restated net loss of $9.3 million for the 15 months ended March (FY17).
Due to the restated FY17 results, SunMoon would have recorded a pre-tax loss of $7.86 million for the last three most recently completed financial years.
Should its market cap fall below $40 million for the six month ended Dec, the company says it will be placed on the Singapore Exchange watch-list.
The stronger bottomline came on the back of a more than doubling of revenue to $45 million for FY18 compared to $20 million to FY17.
The increase was mainly due to higher sales in the China market via Shanghai YiGuo E-Commerce Co., which contributed to 64% of group revenue starting July 2017.
Gross profit in FY18 came in at $0.78 million with 1.7% margin compared to $0.82 million with 4.1% margin in FY17 mainly due to the introduction of new products to gain new market share especially in the China market.
Administrative expenses fell to $3.25 million in FY18 from $5.25 million in FY17.
SunMoon says the latest results are proof that its “Network x Geography x Products (NxGxP)” business model is gaining momentum.
In FY18, SunMoon expanded its geographic footprint and product range. It has shipped avocados to China and Fuji apples to Thailand, now its second biggest apple market after Indonesia.
SunMoon has also started the sale of packaged, ready-to-drink whole young Thai coconuts to Singapore and is also working on increasing its Thai coconut supply to the US, Australia and Europe.
To date, it has 315 products in six countries, ranging from fresh fruits such as apples, pears, and seasonal fruits such as cherries, grapes and pomegranates; to consumer products such as fruit cups, juices, snacks and frozen durians. Its network now stands at over 15,000 point of sales globally.
Gary Loh, CEO of SunMoon, says, “While margins for this business remains a challenge, however, we believe that this is short-term, and can be overcome with technology. We are confident that, through sustained brand-building activities and investments in technology such as blockchain, SunMoon Food will grow market share as a global distributor and marketer of high-quality fruits and vegetable products.”
As at 10.53am, shares in SunMoon are trading at 6 cents.
