SINGAPORE (Nov 10): Super Group, the three-in-one beverage manufacturer and retailer with an Asia footprint, delivered earnings of $10.5 million for the 3Q14 ended Sept on the back of $129.5 million in revenue. Compared to 3Q13 a year ago, this was a decrease of 46% and 3% respectively.

Super Group said the macro-economic environment continued to be challenging, marked by higher raw material costs, particularly that of palm kernel oil, as well as stiffer competition.

Gross profit margin for 3Q14 stood at 32% down 5ppt, dragged by higher raw material costs and the higher composition of food ingredients sales which carry a lower gross profit margin.

Branded Consumer sales decreased 6% $82.0 million mainly due to lower sales in Singapore, China, Philippines and Other Markets.

“Sales for Singapore, Philippines and Other Markets decreased due to teething issues related to the relocation of the group’s Singapore packaging plant to Malaysia, as well as delisting of non-performing products and stiffer competition,” said the company.

In China, sales were lower too as last year’s sales were lifted by a new product launch in 3Q13.

Meanwhile, Food Ingredients sales increased 3% to $47.5 million mainly boosted by increased demand in Asia, particularly in the Philippines.

Super Group said it expects market conditions to remain competitive while raw material costs and regional currency fluctuations will impact its operating performance.

Super Group is down 3.7% at $1.055 as at 3:38 p.m. local time.