Fri, Sep 06, 2019 - Page 12 News List

Fwusow net income drops 46.66%

By Kwan Shin-han  /  Staff reporter

Oil maker Fwusow Industry Co Ltd (福壽實業) yesterday reported that net income dipped 46.66 percent year-on-year to NT$44.32 million (US$1.42 million) in the first half of the year, with earnings per share falling from NT$0.26 to NT$0.14, due to low chicken prices and non-operating losses.

Gross margin edged down 0.4 percentage points to 8.26 percent, but revenue rose 2.22 percent to NT$5.98 billion in the same period.

Fwusow attributed the weakening earnings to the company’s meat processing segment, which reported net losses of NT$49.85 million in the first six months, widening from NT$12.7 million a year earlier, as sales dropped 7.2 percent year-on-year due to falling chicken prices.

“We expect formula feeds and pet food to help drive earnings growth in the second half of the year, as their margins remain high,” Fwusow chief financial officer Tai Chen-hui (戴禎慧) told an investors’ meeting in Taipei.

The company is investing NT$70 million in a prepared frozen food plant in Taichung’s Wuci District (梧棲), which is expected to begin operations in December, to help improve its food processing business, Fwusow chairman and president Hung Yau-kuen (洪堯昆) said.

The new plant would supply local food chains such as Wowprime Corp’s (王品) 12 Sabu (石二鍋) hot-pot restaurants, Hung said.

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