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The Group's revenue for the current quarter three (3) months ended 30 September 2016 ("3Q2016") was recorded higher by approximately RM0.08 million, representing an increase of 1.35% as compared to the preceding year corresponding quarter ended 30 September 2015 ("3Q2015"). The increase in revenue was mainly due to the increase in demand of recycled petrochemical products as well as recycled paint and solvent products which saw an increase in sales by 100.00% and 29.62% respectively as compared to 3Q2015.
The Group's gross profit margin has increased by 10.89% from 25.58% recorded in the 3Q2015. The improvement in gross profit margins was mainly due to the new stream of revenue generated from the sales of petrochemical products, contributed approximately 32.26% of the total revenue for the 3Q2016 which yielded a higher gross profit margin.
In view of the improvement in revenue, general operational cost savings, lower finance costs incurred and the gain from disposal of property, plant and equipment of RM0.39 million during the quarter, the Group has turned from a loss before taxation of RM0.42 million in 3Q2015 to a profit before taxation of RM0.53 million in the current quarter.
For the FPE 30 September 2016, the Group's revenue has decreased by RM4.22 million or 21.17% as compared to the FPE 30 September 2015 as a result of the decrease in selling price in correspondence to the decrease in the global oil prices as well as the declining in sales for our recycled oil products. However, the decrease was partly offset by new sales of recycled petrochemical products.
The Group's gross profit margin stood at 34.39%, representing an increase of approximately 7.96% as compare to 26.43% recorded in the FPE 30 September 2015. The increase in gross profit margins was mainly due to new stream of revenue generated from the sales of petrochemical products, contributed approximately 22.61% of the total revenue for the FPE 30 September 2016 which yielded a higher gross profit margin.
For the FPE 30 September 2016, the Group has incurred a loss before tax of RM0.18 million as compared to a profit before taxation of RM0.24 million in the FPE 30 September 2015. Taking into consideration the effect of non-recurring gain from the disposal of plant, property and equipment amounted to RM0.42 million and RM1.89 million recorded in the FPE 30 September 2016 and 2015 respectively, the Group has recorded a lower loss before taxation amounted to RM0.60 million in FPE 30 September 2016 as compare to RM1.65 million in FPE 30 September 2015. The lower operational loss was mainly due to overall savings in administrative expenses, sales and distribution expenses as well as finance costs in FPE 30 September 2016.
The outlook for the financial year ending 31 December 2016 remains challenging due to the weak oil prices and uncertainty of global economy. This in turn may affect the demand for the Group's products and services and correspondingly assert a downward pressure on the Group's revenue and margins. Nonetheless, the Group is constantly undertaking continuous enhancements in production efficiencies, overhead and production cost management. In addition, the Group intends to enhance its product offerings, which is expected to generate better sales and profitability.