GMG Global’s net profit surges 66% to S$74.6m in 2011

As the group’s newly acquired Teck Bee Hang contributed larger processing tonnage for the year.

GMG Global Limited reported record earnings and revenue for the full year ended 31 December 2011. The Group’s attributable profit ended at S$74.6 million, 65.6% higher than the corresponding period ended 31 December 2010 on the back of 185% revenue growth from S$418.7 million in FY2010 to S$1,194.3 million in FY2011.

Gross profit increased 63% in FY2011 from S$104.7 million in FY2010 to S$170.7 million FY2011 on revenue growth. Gross profit margin ended at 14.3% for FY2011 compared with 25.0% in FY2010 due to larger processing tonnage contribution from TBH.

Operating expenses which includes administrative, distribution, other expenses and finance costs registered a total increment of 106% to S$81.3 million for FY2011 from S$39.4 million in FY2010, largely due to the first time inclusion of Teck Bee Hang’s expenditure. The increase in operating expenses is in line with the overall increase in revenue.

Wrapping up the year under review, the Group reported a healthy cash and cash balance of S$452.2 million as at 31 December 2011. The Company has successfully completed a Rights Issue with net proceeds of S$344.2 million in December 2011.