GMG Global, the integrated producer of natural rubber from planting to marketing and exporting of natural rubber; announced a 59.6% increase in net profit to $6.3 million for the three months ended 31 March 2010 (1Q2010).

Turnover of the group increased by 183.8% to $82.7 million for 1Q10 from $29.2 million in 1Q09. The average selling price improved by 58.1% to $3,902 per tonne in 1Q2010 compared to $2,467 per tonne in 1Q2009 as rubber prices witnessed a strengthening in the current reporting period.

Gross profit for the group grew by 153.4% to $22.3 million in 1Q2010 with the tonnage of natural rubber sold increasing by 79.4% to 21,205 tonnes in 1Q2010 compared to 11,818 tonnes in 1Q2009. Gross profit margin however paled by 3.2 percentage points to 27.0% due to the higher costs of raw material purchases.

Operating expenses, which encompass administrative, distribution and other expenses registered a total increment of 52.1% to $8.4 million in 1Q10 from $5.5 million in 1Q09 due to overall increase in all administrative, distribution and other expenses for the reporting period.

Administrative expenses increased by 31.1% to $3.4 million in 1Q10 from $2.6 million in 1Q09 while distribution expenses increased by 67.1% to $2.6 million in 1Q10 from $1.5 million in 1Q2009. Other operating expenses increased by 75.9% to $2.4 million in 1Q10 from $1.4 million in 1Q09.

The group continues to maintain a healthy balance sheet with low gross gearing and a net cash position. The cash and cash equivalents stood at a commanding level of $137.6 million as at 31 March 2010.