Fu Yu Corporation has reported net profit of $6.0 million, up 17.6% y-o-y for the 1QFY2022 ended March. Of the sum, $1.6 million came from Fu Yu Supply Chain Solutions, which offset the net profit decline from the group’s manufacturing business due to lower foreign exchange gains.

During the quarter, revenue of $85.6 million for the 1QFY2022 ended March, 146.7% higher y-o-y.

The higher revenue was thanks to higher sales from its manufacturing business and new revenue streams from supply chain management services under Fu Yu Supply Chain Solutions Pte Ltd.

The group’s manufacturing business saw revenue of $36.3 million, up 4.6% y-o-y, thanks to higher sales from its Malaysia and China segments. Sales in Singapore were largely unchanged y-o-y.

Fu Yu Supply Chain Solutions, which was acquired in July 2021, contributed revenue of $49.3 million during the quarter.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/results/golden-agris-1hfy2022-earnings-surge-154-us390-mil-back-higher-cpo-prices?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Golden Agri's 1HFY2022 earnings surge 154% to US$390 mil on the back of higher CPO prices</a>

1QFY2022 gross profit increased 34.1% y-o-y to $11.4 million, with higher gross profit of $9.0 million from the group’s manufacturing business.

Fu Yu Supply Chain Solutions registered gross profit of $2.4 million.

Gross profit margin during the quarter fell 11.2 percentage points to 13.3%, derived solely from its manufacturing business. Gross profit margin for the manufacturing business increased by 0.3 percentage points to 24.8% while gross profit margin for Fu Yu Supply Chain Solutions stood at 4.9%.

In line with the revenue and gross profit growth, Fu Yu’s operating profit increased 47.8% y-o-y to $6.8 million.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/news/results/uni-asia-declares-highest-interim-dividend-inception-earnings-more-double-y-o-y?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Uni-Asia declares highest interim dividend since inception, earnings more than double y-o-y</a>

Thanks to the group’s net US dollar assets position, the appreciation of the USD against the SGD, ringgit and RMB resulted in a net foreign exchange gain of $0.5 million in 1QFY2022. This was however lower than the net foreign exchange gain of $1.4 million recorded in 1QFY2021.

As at end-March, cash and bank balances stood at $68.4 million.

In addition to rebranding its manufacturing business and elevating its profile as an advanced solutions provider, Fu Yu also plans to plans to drive business development and expand the breadth of services for its manufacturing business.

Fu Yu Supply Chain Solutions will also continue to seek opportunities in commodities supply chain management services to generate additional revenue streams, while assessing avenues to reap potential cost savings in the procurement and logistics management of raw materials for the Group’s manufacturing business.

Shares in Fu Yu closed 1 cent lower or 3.77% down at 25.5 cents on May 12.

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