9th May 2018 14:35
LONDON (Alliance News) - Walcom Group Ltd said Wednesday it swung to a loss in 2017 due to volatility in the exchange rate of the Chinese renminbi against the Hong Kong dollar, rising raw material costs, and greater competition.
For 2017, the animal feed additives company reported a loss of HKD4.9 million, equivalent to GBP459,636, while the year before it recorded a profit of HKD2.7 million.
Revenue slipped 4.3% on the year before to HKD44.5 million from HKD46.5 million.
Sales in China saw a 2% decrease in 2017 due to the country's slowing economy and the poor performance of the pig farming industry there, Walcom said.
Sales in Thailand grew by 2% representing 38% of the group's total sales, while in Korea sales dropped by 47% after Walcom's distributor there lost a major customer.
The company said it believes 2018 will be a challenging year as it anticipates a volatile global economic outlook.
Walcom shares were untraded on Wednesday, last quoted at 1.00 pence.
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