SINGAPORE (Nov 13): First Resources reported 3Q17 earnings dropped 11% to US$31.9 million ($43.4 million) from US$35.9 million in 3Q16.
The group recorded 3Q17 sales of US$137.4 million, 9.3% lower than US$151.5 million a year ago, due to lower average selling prices and sales volumes.
Similarly, cost of sales dropped 6.9% to US$66.1 million from US$71.0 million last year, mainly due to the effects of inventory build-up.
Hence, gross profit for the period came in at US$71.3 million, 11.4% lower than US$80.5 million in the previous year.
Impacted by lower average selling prices, gross margin for the period was lower at 51.9% compared to 53.1% in 3Q16.
Selling and distribution costs increased 20.3% to US$11.4 million from US$9.44 million a year ago, due to the higher freight charges and export taxes incurred.
The group recorded gains on foreign exchange of US$1.7 million compared to a loss of US$0.35 million last year, which arose mainly from the impact of foreign currency movements on monetary assets and liabilities of the subsidiaries.
Looking forward, First Resources expects nucleus fresh fruit brunches (FFB) production growth in 4Q17 over 4Q16 to be even slower.
Shares in the counter closed $1.95 on Monday.
