Sing Food – BT

SFI’s Q3 net climbs 26.7% to $5.5m

Higher turnover in S’pore offsets weakness in overseas markets

SINGAPORE Food Industries (SFI) said yesterday its third-quarter net profit climbed 26.7 per cent to $5.5 million – from $4.3 million a year earlier – as food distribution and catering sales improved.

Earnings per share rose to 1.1 cents, from 0.9 cent a year earlier.

Turnover for the three months ended Sept 30, 2007 rose 13.4 per cent to $162 million, from $142.9 million previously.

Revenue was boosted by higher sales in Singapore that offset relative weakness in overseas markets.

Turnover from Singapore rose 23.7 per cent to $66.8 million on higher sales across all Singapore businesses. As a result, profit before tax from Singapore operations increased a substantial 45.5 per cent to $8.2 million.

Turnover from overseas operations also grew, by 7 per cent to $95.2 million. But an $800,000 overall loss was incurred because of losses at subsidiaries Cresset and Shanghai STFI.

‘The improvement in performance in the Singapore operations in the third quarter has been broad-based,’ said SFI chief executive Roger Yeo.

‘This improvement has helped offset the relative weakness in overseas operations, which were affected by significant raw material cost increases in the UK. We will mitigate these higher raw material costs through price increases.’

For the nine months to Sept 30, 2007, SFI’s net profit rose 6.4 per cent to $19.6 million on a 12.1 per cent increase in turnover to $493.4 million.

The company declared an interim dividend of 1.8 cents per share, which will be paid on Jan 22 next year.

Its shares closed 1.5 cents higher at 81.5 cents yesterday. The stock has fallen some 11.9 per cent since the start of the year.

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