Super Group’s net profit plunged 46% to $10.5m in Q3

On back of higher costs and tough competition.

Mainboard-listed food and beverage firm Super Group today reported disappointing results for the third quarter. Super Group’s net profit plunged 46% year-on-year to $10.5m in Q3, down from $19.5m in the same period last year.

The Group blamed its disappointing results on the challenging macro environment, marked by higher raw material costs, particularly that of palm kernel oil, as well as stiffer competition.

Gross profit margin for the third quarter stood at 32%, down 5ppt year-on-year. Margin was dragged by higher raw material costs and the higher composition of food ingredients sales which carry a lower gross profit margin.

For the nine months ended 30 September 2014, net profit came in at $44.8m on the back of revenue of $385.8m. The 44% decline in net profit was partially due to the absence of a one-off gain of $17.1m from the disposal of a 35.3% stake in Sun Resources Holdings in May 2013.

Branded Consumer sales decreased 6% YoY to S$82.0m in 3Q14 mainly due to lower sales in Singapore, China, Philippines and Other Markets.

Sales for Singapore, Philippines and Other Markets decreased due to teething issues related to the relocation of the Group’s Singapore packaging plant to Malaysia, as well as delisting of non-performing products and stiffer competition.