Blame it on raised tax rates, past one-off gains.
Battered by climbing tax rates and haunted by gains from quarters past, Super Group’s attributable profit in 4Q15 plunged 39% YoY to $15.7m.
According to the instant food and beverage brand owner, the pullback in earnings is due, firstly, to a one-off gain from a property disposal in the corresponding quarter in 2014. Secondly, the company grappled with a higher effective tax rate arising from withholding taxes on dividend remittances and expiry of tax incentives enjoyed by certain subsidiaries.
Meanwhile, revenue was down 8% on back of reduced food ingredients (FI) sales. The FI sales pullback is in turn due to lower sales in Indonesia and China, partially offset by increased sales in Philippines and Taiwan.
Branded consumer sales also dipped 1% to $96m due mainly to reduced sales into the Philippines and Myanmar markets. The company notes, though, that it did see a pick-up in sales in key markets like Singapore, Malaysia and China as a result of the rollout of new products and the relaunch of one of its coffee products.
Despite the lower sales revenue, though, Super Group’s operating profit inched up 3% to $21.2m. On the other hand, total operating expenses dipped 2% to $33.3m.
Looking forward, Super Group believes that ongoing schemes will better position the group to ride on the rising consumption of the middle-income group in Asia.
The company also anticipates market conditions to stay volatile and competitive in the next twelve months. While key raw material prices and currency fluctuations may hurt operating performance, management asserts it is ready to meet challenges and mitigate impact on the group’s businesses.
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