Beverage giant Wisynco Group Limited reported a dip in third-quarter profit as the company continued to navigate a challenging economic environment, marked by softening consumer demand and logistical disruptions in key export markets.

The company’s profit falling to $971 million was almost 18 per cent below the $1.2 billion earned for the corresponding period of the previous year. Similarly, nine-month profit which fell to $3.5 billion, down from $3.9 billion in the period prior or 12.4 per cent year on year, was largely impacted by increased non-cash-related expenses, chief among which was an increase in depreciation costs stemming from various plant expansions.

Revenues, which, on the other hand, marginally grew 4.8 per cent, totalled $13.7 billion for the period ended on March 31, 2025.

“In general, there was a softening in the market due to lower demands across all markets. While our third quarter is usually the slowest of our fiscal year, we saw notable resilience in core brands despite declines due to reduced demand in the hotel and food service categories. Export revenues were also hampered due to logistic issues in our major markets,” the company’s directors informed shareholders in a recent interim report.

These declines come amid broader economic pressures, including US trade policy changes and the scaling back of travel, as tourists opt to conserve disposable income. Companies across the region have also faced rising costs as they adjust supply chains in response to newly imposed tariffs.

Wisynco’s profit before tax, which came in at $1.2 billion, also saw a 16 per cent decrease when compared year over year. This as the company also grappled with higher operational expenses and reduced export contributions due to logistics issues in major overseas markets. The large manufacturer’s gross profit, however, rose modestly by 2.6 per cent to total $4.5 billion, but even as margins narrowed to 32.8 per cent, down from 33.5 per cent a year earlier. The lower margin was attributed to reduced absorption of fixed production costs amid slower volumes.

Operating expenses on the other hand continued to climb, with selling, distribution and administrative (SD&A) costs increasing by 9.3 per cent to $3.5 billion. Wisynco’s SD&A expense to sales ratio was 25.2 per cent for the quarter, compared to 24.2 per cent in the prior year or 100 basis points greater.

“As we head into our final quarter and the new fiscal year starting July 1 2025, we believe we will see additional revenue streams which should reduce our SD&A expense to sales ratio,” the directors said.

With the company ending the quarter with a healthy balance of $8.7 billion in cash and investment securities and a working capital ratio of 2.12, the board expressed confidence in the group’s financial stability and also its ability to withstand ongoing pressures even as headwinds persist.