Nico Steel’s half year losses shrink on better sales of branded products

SINGAPORE (Oct 7): Half-year losses for Nico Steel narrowed to US$0.64 million ($0.88 million) from US$1 million a year ago, thanks to better sales for its higher margin branded products.

Revenue fell 28% to US$7.2 million due to a general reduction in demand and intense market competition but sales of its Nico branded products accounted for 18.3% of the group’s total revenue compared to 8.4% a year ago and gross profit margin increased from 16.5% to 21.5%.

Geographically, China remained as the key revenue driver the half year, contributing 76.7% of the group’s total revenue, as compared to 61.7% a year ago. Thailand and the United States contributed 18.1% and 3.7% respectively to the group’s revenue, compared to 15.9% and 6.0% a year ago.

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