It is due to operational improvements in the food manufacturing business. Neo Group reported losses of $0.65m in 1QFY18, which is significantly lower than last year’s $2.5m loss for the…

It is due to operational improvements in the food manufacturing business.

Neo Group reported losses of $0.65m in 1QFY18, which is significantly lower than last year’s $2.5m loss for the same period.

The reduced losses were attributed to better cost control and a turnaround at the food manufacturing business, according to RHB Research. The Group also cut its advertising and promotional activities to support margins.

RHB noted that the company’s revenue grew 27% YoY to $40.6m, thanks to the newly acquired U-Market Place and Hi-Q plastic grabbed in January and April.

Neo Group’s food catering business also improved by 5% after it tried a new market segment for eldercare and childcare. Its food manufacturing business also gained 5% from the launch of new products.

Neo Group Limited is Singapore’s leading catering group backed by an integrated  value chain and strong track record accumulated over 22 years.