December 27, 2013

Due to lower sales from the Fishery and Fish Supply division (FFS), Pacific Andes International Holdings Limited has experienced an 8.9% drop in revenue and 21.3% decline in gross profits in its fiscal year 2013.

The firm also reported that lower catch and sales volume from FFS division was reflected in 17.7% to 15.3% fall in overall gross profit margin.

The company informed that there was an 8.1% decrease in revenue from the FFS Division in the year that ended on September 28, 2013, to HKD4,329 million (US$558.3 million), accounting for 32.5% of the Group's total revenue, mainly due to lower average selling prices of various products, and lower sales contributions from the Peruvian Fishmeal Operations.

However, the higher average selling prices of fishmeal/fish oil and one-month revenue contribution from Copeinca contributed to partly mitigate the negative impact.

The Frozen Fish SCM Division, which operates through its Singapore-listed subsidiary Pacific Andes Resources Development Limited (PARD), recorded an 8.9% reduction in revenue because of lower sales volume and average selling prices of products.

It was noted that there was a 10% drop in revenue from the Processing and Distribution Division, which was partially mitigated by focusing on improving efficiency, reducing costs and selectively increasing capacity and downstream capability.

"We remain positive about the growth potential for all of our business divisions. The acquisitions and investments completed in 2013 are expected to become growth engines for the Group and will provide increasing revenue to facilitate our development in the global seafood industry," said Ng Joo Siang, Vice-Chairman and Managing Director of Pacific Andes.

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