GMG Global, the planter, tapper, processor and exporter of natural rubber, says group turnover remained stable at $61.1 million for the three months ended 31 December 2009 (4Q2009).

For the first nine months of FY2009, GMG Global was affected by lower rubber prices and only returned to profitability in 4Q as rubber prices gradually recovered from their lows. Thus, net profit attributable to equity holders for 4Q was $5 million.

In 4Q, the tonnage of rubber sold increased by 34% to 20,918 tonnes, however average selling price declined by 26% to $2,923 per tonne.

Gross profit for the group fell by 17% to $19.2 million with gross profit margin declining to 31.4% in 4Q2009 from 37.5% in 4Q2008.

GMG Global continues to maintain a healthy balance sheet with low gross gearing and a net cash position. The cash and cash equivalents stood at $174.8 million as at 31 December 2009.

For the most of FY2009, natural rubber prices remained volatile as they increased from a low of US$1,050 per tonne to US$3,100 per tonne. Currently, the price has stabilised at about US$3,000 per tonne.

GMG Global says demand from US and European markets remains volatile although they have improved slightly in the past few months. However, the demand from China looks robust.

GMG says it plans to more than double its sales tonnage in two to three years by expanding its plantation area in Cameroon and continue with its acquisition drive.