SINGAPORE (Aug 4): Yeo Hiap Seng posts a 35% decline in earnings to $5.3 million for the 2Q ended June, from $8.1 million a year ago, on the back of lower revenue.
This was mainly attributable to lower net profit from its F&B division, as well as the absence of dividend income from its investment in Super Group.
For the first half of 2017, Yeo Hiap Seng’s earnings surged to $144.3 million, from $13.5 million a year ago, mainly due to a $138.35 million gain on the disposal of its investment in Super Group.
Revenue fell 23% to $87.2 million in 2Q17, from $112.8 million a year ago.
The decline was mainly due to the transition to new distributors in Cambodia, competitive pricing, and general market weakness.
As at end June, cash and cash equivalents stood at $241.9 million.
Yeo Hiap Seng has declared a special dividend of 2 cents per share.
Looking ahead, Yeo Hiap Seng says it expects its F&B margins to come under pressure in the next 12 months due to soft economic conditions and weak outlook for its key markets.
In addition, the group says it faces competitive selling prices and uncertainty in raw material prices, as well as fluctuations in regional currencies that will impact its results.
Shares of Yeo Hiap Seng closed 1.5 cents higher at $1.32 on Friday.
