Sales decreased by 30.2% to US$135.6 million in 1Q18, reflecting the combined effects of lower sales volumes and average selling prices.
Cost of sales comprising mainly harvesting costs, plantation maintenance costs and processing costs decreased by 29.3% to US$72.2 million in 1Q2018, mainly due to the effects of inventory build-up which resulted in a reduction in sales volumes in spite of the improved production volumes as compared to the corresponding period last year.
Gross profit decreased by 31.2% to US$63.3 million mainly due to the lower sales volumes and average selling prices. Gross profit margin came in at 46.7% compared to 47.4% in 1Q17, impacted by the lower average selling prices.
The group’s EBITDA decreased 31.5% to US$60.0 million in 1Q18, mainly due to the effects of inventory build-up and lower average selling prices.
The group also recorded gains on foreign exchange of US$2.5 million in 1Q18 as compared to US$1.8 million in 1Q17 mainly from the impact of foreign currency movements on monetary assets and liabilities of the subsidiaries.
The group’s net financial expenses decreased 26.4% to US$4.3 million in 1Q18, mainly due to the reduction in interest expenses from the repayment of Islamic medium term notes during 2017 which were partially refinanced using bank loans, as well as the higher interest income earned on cash and bank balances.
Shares in First Resources closed 2 cents lower at $1.61 on Monday.
