Neo Group's 1H net profit soared 65.7% to $0.4m

New acquisitions gave revenues a boost.

Singapore’s food catering group, Neo Group announced that its revenue for the six-month period ended 30 September 2016 (1H2017) grew 29.6% to S$67.4 million from S$52.0 million in the equivalent period last year.

Improved performance across most business segments and a S$7.7 million revenue contribution from the Food Trading business segment lifted the integrated catering solutions provider’s 1H2017 topline performance.

Food Retail grew 11.7% to S$9.8 million in 1H2017 from S$8.8 million on an increase in number of stores and effective promotions launched during the period under review.
Similarly, Food Manufacturing reported a 45.9% growth in revenue of S$21.9 million compared to S$15.0 million across the comparative periods.

Impacted mostly by seasonality due to the lack of festivities and in the absence of SG50 celebrations that lifted catering volumes last year, the Food Catering segment
slid marginally by 1.2% to S$27.3 million in 1H2017 from S$27.6 million in 1H2016.

In tandem with the stronger topline performance, coupled with other income earned of S$3.0 million, consisting mainly of a S$1.8 million one-time gain on disposal of a noncore
property, Neo Group reported 1H2017 net profit attributable to owners of the parent (net profit) of S$0.4 million, a 65.7% rise from S$0.3 million in 1H2016.

For the three-month financial period ended 30 September 2016 (2Q2017), Neo Group reported a 40 times increase in net profit of S$2.9 million compared to S$0.07 million a year ago (2Q2016) on a 13.4% rise in revenue to S$35.5 million from S$31.3 million across the same comparative periods.

Removing the impact of the one-time gain on disposal, which amounted to S$1.8 million in 2Q2017, the Group reported an operational profit of S$1.1 million, turning
around from an operational loss recorded in the preceding quarter.