Neo Group Returns To The Black for 1Q16

Catering firm Neo Group recorded a 61.7 percent surge in turnover to $20.7 million for the first quarter ended 30 June 2015, underpinned by maiden revenue contribution from its newly-acquired food manufacturing business and better food catering sales.

Contributions from the food manufacturing business was attributable to the firm’s recent acquisition of a 55 percent stake in Thong Siek Holdings (TSH) – manufacturer of the “DoDo” brand of fishballs and other products – and further synergies are expected to be reaped from the deal.

In tandem with top line growth coupled with the expenses associated with the acquisition of TSH, total expenses increased. Overall, the company was able to reverse from a loss of $0.1 million in 1Q15 to record a net profit of $0.2 million in the current period.

While outlook of its businesses remain positive, Neo Group noted that it will continue to leverage on its strong brand and integrated value chain to pursue growth, also keeping a lookout for potential acquisition targets that can potentially reap synergies with its core business.

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