SINGAPORE (Nov 14): SunMoon Food Company reported 2Q18 losses widened to $2.62 million, compared to losses of $990,000 in 2Q17.
This brings 1H18 losses to $3.48 million, compared to earnings of $834,000 in 1H17.
Revenue for the quarter came in at $14.3 million, 44% higher than $9.92 million in the previous year, mainly due to sales to Shanghai YiGuo E-Commence and its related companies. The sales from Yiguo constituted 43% of the group's revenue.
However, due to a 71% y-o-y increase in cost of sales to $15.7 million, gross loss for 2Q18 was $1.46 million, compared to gross profit of $705,000 a year ago.
Gross margin was –10%, compared to 7% in the previous year. This was mainly due to seasonally low pricing of certain key products in China and the weakening of the Chinese yuan.
Other income saw a significant rise to $500,000 from $20,000 last year.
As at end-Sept, cash and cash equivalents stood at $3.91 million.
On the outlook, the group says that the operating environment will remain challenging and competitive.
Nonetheless, it will continue to focus on its value added fresh fruit products and processed fruit products in China and South East Asia.
Shares in SunMoon closed at 4.4 cents on Wednesday.