SINGAPORE (Feb 9): USP Group swung back to profitability in 3Q18, posting earnings of $0.8 million, compared to a loss of $2.73 million in 3Q17.
Revenue for the period was $9.59 million, 11.4% more than $8.61 million recorded in the previous year, primarily boosted by contribution from Supratechnic Group, especially in its new markets in East Malaysia and Indonesia, but partially offset by a dip in the oil segment.
Cost of sales also increased by 25.3% to $6.18 million, from $4.93 million last year.
Hence, gross profit came in at $3.40 million, 7.4% lower than $3.67 million a year ago.
Selling and distribution expenses were 72.54% higher at $0.33 million, from $0.19 million in the previous year, due to the corresponding increase in revenue from the marine trading business..
During the quarter the group recorded a $1.16 million exceptional gain compared to a loss of $3.66 million last year, from the divestment of MSV Systems.
As such, EBITDA increased to a positive $1.99 million as compared to the corresponding period of a negative EBITDA of $1.98 million.
Li Hua, executive chairman and CEO of USP Group says, “As part of the expansion plans, we have incorporated two new entities in Brunei and Malaysia during the last quarter of 2017 to sell the ‘Mercury’ brand of high quality outboard motors in these 2 countries.”
Li also expects the oil segment to make a positive contribution to the group’s financials.
Shares in USP Group closed at 18 cents on Friday.
