Mon, Jul 23, 2018 - Page 16 News List

Namchow profit plunges on foreign exchange losses

By Chen Cheng-hui  /  Staff reporter

Baking oil manufacturer Namchow Holdings Co Ltd (南僑投資控股) reported an unaudited net profit of NT$60.73 million (US$1.98 million) for last month, flat from the previous month, but down 46.21 percent from a year earlier.

The firm — which also manufactures frozen dough and dish soap — blamed the lackluster performance on a foreign-exchange loss of NT$50 million during the month.

Earnings per share (EPS) were NT$0.24, down from NT$0.45 a year earlier, the company said on Friday last week.

Net profit in the second quarter rose 3.68 percent quarterly to NT$229 million, the firm said.

However, the figure was down 17.53 percent annually due to a foreign-exchange loss of NT$64 million in the quarter, Namchow said.

Cumulative net profit in the first six months of this year fell 8.3 percent annually to NT$450 million, with EPS of NT$1.82, while consolidated revenue rose 11.8 percent to NT$8.97 billion, driven mainly by its oil and food business in China, the firm said.

Namchow expects its overall business to start showing signs of growth next month, Chinese-language Cnyes.com reported on Friday, citing company sources.

Namchow shares fell 1.18 percent to close at NT$58.6 on Friday in Taipei trading. They have retreated 8.01 percent so far this year, underperforming the broader market’s 2.72 percent rise over the period.

Meanwhile, Namchow’s Shanghai subsidiary, Namchow Food Group (Shanghai) Co (上海南僑食品集團), last month submitted an initial public offering application to the China Securities Regulatory Commission, as the 96.15 percent-owned unit hopes to accelerate its expansion in China.

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