SINGAPORE (Feb 28): Y Ventures has sunk into the red in FY17 with a loss of US$0.9 million ($1.2 million) compared to a profit of $1.5 million in the previous financial year due to higher administrative expenses.

This comes despite a 17.4% increase in revenue to US$14.2 million from US$12.1 million a year ago, which was mainly due to higher sales of goods on online marketplaces.

In line with the higher revenue, cost of sales grew 21.8% to US$8.3 million from US$6.8 million from the higher costs of products, logistics, freight and handling charges in tandem with the higher sales of goods.

Similarly, selling and distribution expenses grew 70.2% to US$3.3 million from US$2 million previously as a result of an increase in marketplace fees, fees to third-party logistics providers, and inventory & inbound services fees.

Administrative expenses increased to US$3.8 million over the year from US$1.7 million a year ago due to a one-off impairment loss of property, plant & equipment (PPE) and IPO expenses incurred.

Y Ventures says that without these administrative expenses, the group would have recorded a profit after tax for the year.

In its outlook, the group says it expects the e-commerce market to remain generally competitive over the near future but promising in the long run. It also expects its new subsidiaries setup in FY2017 to begin contributing revenue in the coming financial year.

Y Ventures says it is devoting its new resources to seek new opportunities and expand its product mix, increase its overall operational capabilities, while remaining vigilant on cost and cash management.

Shares in the group closed 0.74% higher at 68 cents.