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The Group's revenue for the current quarter three (3) months ended 30 September 2018 ("3Q2018") was higher as compared to 30 September 2017 ("3Q2017") by RM3.96 million, an increase of 38.78%. This was mainly due to the increase in sales of the recycled petroleum products by 75.87%; recycled paints and solvent products by 29.69% while witnessing decreased in sales from recycled petro chemical by 68.67%, recycled drums and containers by 4.00% and scheduled waste collection services by 46.34% respectively as compared to 3Q2017.
The Group's gross profit margin was 18.20% in 3Q2018, a decrease of 10.18% as compared to 3Q2017. The decrease in gross profit margin was mainly due to different product mix in the 3Q2018 as compared to 3Q2017.
The administrative expenses has decreased by 23.92% as compared to 3Q2017 mainly due to lower provision of impairment of trade receivables in 3Q2018 by RM0.40 million and there was no stamp duty incurred as compared to the 3Q2017 amounted to RM0.29 million. This was partly offset by additional capital gain tax of RM0.12 million incurred in relation to the disposal of factory premises in Financial Year 2014.
The selling and distribution cost has decreased by 25.00% as compared to 3Q2017 mainly due to the saving in transportation cost as a result of the rationalization of the distribution channel.
The finance cost has reduced by 30.55% as compared to 3Q2017 mainly due to the restructuring of bank loan in 3Q2018 and gradual repayment of bank borrowing since last financial year.
Resulting from the above, the Group has recorded a higher profit before taxation of RM0.64 million for the current quarter as compared to RM0.33 million recorded in the 3Q2017.
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. Nevertheless, 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.