SINGAPORE (Aug 11): UPP reported 2Q earnings more than doubled $6.4 million from $2.9 million a year ago.
The increase was mainly due to Taiga Building Products’ net profit of $5.7 million which was consolidated into the group's results in the current quarter.
Revenue rose to $409.4 million from $16 million. The significant increase in the revenue was primarily due to contribution from Taiga and its subsidiary corporations, following the completion of the acquisition on Jan 31.
Revenue from the paper mill business in the current quarter was fairly consistent with the previous corresponding period whereas the gross profit margin (GPM) decreased from 21.0% to 17.4% on a year-on-year basis. The decrease in GPM was mainly due to higher raw material cost.
Earnings for the half year more than doubled to $9.1 million from $3.7 million.
The group's half-year results included a currency exchange loss of $4.3 million that arose mainly from the translation of intercompany receivables and bank balances denominated in Canadian Dollar (CAD) and United States Dollar (USD).
These losses were partially offset by gain on disposal of assets held-for-sale which amounted to $1.2 million and was recognised during the current period.
Total distribution, selling and administrative and finance expenses was $45.6 million for 1H17, an increase of $42.0 million from $3.6 million for 1H16.
Shares in UPP closed at 26 cents on Friday.
