11th Nov 2016 07:59
LONDON (Alliance News) - Aquatic Foods Group PLC said Friday it expects difficult trading conditions that have hit its profit and revenue for the year to date to continue in the near-term.
The Chinese marine foods and seafood processor reported gross profit for the nine months to September 30 of CNY157.9 million, around GBP18.7 million, a 24% decrease from CNY206.7 million, approximately GBP24.5 million, in the same period the prior year.
Aquatic Foods' revenue also slumped by 5.0% year-on-year for the period to CNY644.9 million, approximately GBP76.3 million, from CNY678.7 million, around GBP80.3 million.
However, Aquatic Foods noted that its third quarter revenue was improved by 5.1% compared with the first quarter of the calendar year and 11% compared to the second quarter, with sales volume higher year on year, although at lower average prices.
The company said it expects difficult market conditions to continue in the near-term and has increased its marketing and advertising efforts in order to maintain its market condition. Aquatic Foods will also review merger and acquisition opportunities.
"The fall in revenue and gross margins reflects the pressure imposed by the macroeconomic conditions in China. However the board is satisfied that the company remains profitable which demonstrates the strength and resilience of our business model," said Li Xianzhi, chief executive officer of Aquatic Foods.
"The group has been prudently preserving its cash to ensure that it is in the best position to sustain difficult trading periods as well as ensuring that the group is fully prepared to take advantages of this to grow when M&A opportunities present themselves," he added.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.