Zagro Asia Ltd shows net earnings of +33%

Sales grew by 11% from $109.7 million to $121.5 million.Earnings per share rose by 33% to 3.00 cents from 2.26 cents while net asset value per share increased by 8% from 19.79 cents to 21.40 cents.

Financial Summary

Mr Poh Beng Swee, Chairman and CEO of Zagro Asia said, "This is the Group’s best financial performance to date since our listing. We would have registered a higher rate of growth if not for the financial tsunami that hit world markets in the last quarter of FY2008". Nonetheless, gross profit margin inched higher to 26%, from 22% last year. The Group’s crop and animal nutrition businesses contributed significantly to the increased sales and profitability.

Zagro continued to maintain a relatively healthy cash position with cash and cash equivalents standing at $4.3 million for the year. The acquisition of BASF animal nutrition business in Taiwan and the purchase of properties in Thailand for the Group’s operations were funded internally by drawing on the positive cash flow from operations of $14.7 million. The balance of cash together with bank loan were mainly utilised for working capital.

With its diverse geographical base spanning more than 50 countries, Zagro does not expect to be too adversely affected by the unfolding economic turmoil worldwide but Mr Poh cautioned, "Market prices have turned volatile in the aftermath of the global financial crisis and are still seeking equilibrium. In the light of these developments, the Group expects a positive performance for the year ahead, although it would understandably be difficult to surpass FY2008 performance," he added.

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Zagro Asia Limited