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The Group's revenue for the current quarter three (3) months ended 31 March 2018 ("1Q2018") was recorded lower by approximately RM1.89 million, representing an decrease of 16.77% as compared to the preceding year corresponding quarter ended 31 March 2017 ("1Q2017"). The decrease in revenue was mainly due to the decrease in the sales for recycled petrochemicals products by 55.49%, recycled paints and recycled petroleum products by 6.81% and scheduled waste collection services by 18.08% as compared to 1Q2017.
The Group's gross profit margin has increased by 2.42% from 17.31% recorded in the preceding year corresponding quarter 1Q2017. The increase in gross profit margin was mainly contributed by scheduled waste collection service and recycled petroleum products which have increased by 16.05% and 3.06% respectively.
The administrative expenses has decreased slightly by 1.52% as compared to 1Q2017 mainly due to the decrease in depreciation resulted from the disposal of the leasehold bungalow land in 1Q2017 and partly offset by the increase in professional fees incurred in 1Q2018 pertaining to the corporate proposals as mentioned in Section A17 above.
The selling and distribution cost has decreased by 46.32% as compared to 1Q2017. This was mainly due to the rationalisation of distribution channel which had resulted in the savings of transportation costs.
The finance cost has reduced by 18.80% as compared to 1Q2017 mainly due to loan settlement in the 1Q2018.
Resulting from the above, the Group's has recorded a higher profit before taxation of RM0.18 million for the current quarter as compared to RM0.17 million in the 1Q2017.
The outlook for the financial year ending 31 December 2018 remains challenging due to uncertainty of the oil prices and 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 to overseas market, which is expected to generate better sales and profitability.