Written by The Edge
Super Group, the manufacturer and distributor of 3-in-1 coffee and other beverages, says it registered a 101% y-o-y increase in net profit to $18.9 million for the three months ended 30 June 2010 (2QFY2010) as demand for its products improve.
Group revenue grew 9% to $76.7 million in 2Q10 from $70.3 million in 2Q09 mainly driven by higher consumer goods sales which continued to see robust demand from Myanmar, Thailand, Mongolia and China.
Although ingredients sales fell 7% compared to that of 2Q09 as part of the group’s non-dairy creamer production facilities was allocated to higher-profit margin contract manufacturing businesses, ingredients sales for 1H10 posted a 29% increase from higher sales into the East Asian markets of China and Taiwan.
Gross profit margin increased to 39% in 2Q10 from 34% in 2Q09 mainly due to lower production costs. The group also made a gain of $10.0 million from the disposal of its 37.5% equity interest in a joint venture company, Care Property Holdings Pte Ltd.
Super Group expects market conditions to remain competitive in the next 12 months with raw material costs and currency fluctuations set to affect the group’s operating performance. However, management says it will continue to manage their impact.
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