August 15, 2008
Zagro H1 net profit surge 91 percent on price boom
press release
Zagro Asia Limited has posted a 91-percent surge in their first half net profit, from SG$3.1 million to SG$5.8 million.


The group's turnover jumped 30 percent to SG$69.5 million from SG$53.3 million a year ago. Earnings per share soared 90 percent from 1.19 cents to 2.26 cents while net asset value per share rose 4.2 percent from 19.79 cents to 20.62 cents.


Net operating cash flow stands at SG$1.1 million, despite an increased build-up of inventory levels in anticipation for soaring demand for the group's crop as well as animal nutrition and protection products.


Gross margin rose substantially from 22.3 percent to 26.9 percent as a result of the group's improved performance and increased product registrations.


Zagro's good performance was due to rising market prices for agricultural produce and its purchase of raw materials and intermediates at competitive rates.


Poh Beng Swee, chairman and CEO of Zagro Asia, said "This year is set to be a record year for the Zagro Group as we benefit from record prices of agri-related products. Most of our core overseas markets, including Malaysia and Thailand recorded excellent sales growth and this upward trend is expected to continue in the year ahead."


Zagro's acqusition of Novartis' Ectoparasiticide brand, Neocidol and Steladone, has contributed to the top and bottom lines. It is expected that Zagro's acquisition of BASF Taiwan's animal nutrition unit would contribute to next year's income.


Moving ahead this year, Zagro expects to perform significantly better than the previous year.


Poh said the group is expecting agricultural price inflation to continue into the next two quarters of 2008 and if the company is able to continue to manage their purchasing costs as they do now, benefits from the boom in the agricultural sector would be sustained.


"To steer Zagro to the next height of development, we are continually evaluating strategic acquisitions and alliances that will allow the Group to extend its global footprint and penetrate new markets that will also provide Zagro the platform to expand the depth and breadth of its product portfolio," Mr Poh said.


Zagro Group is one of the leading Asian manufacturer and distributor of agricultural products for livestock, poultry, aquatic animals and crops, and its distribution network spans across more than 50 countries globally.

Video >

Follow Us