Blue Power Group is reporting a significant drop in its net profits to $1.2 million on revenues of $225 million during the first quarter of this year.
This compares with $28.4 million profit on revenues of $232 million during the same period the previous year.
The company says the result reflects margin compression and increased competition following the imposition of a 40 per cent tariff on the landed value of its main raw materials used in soap production.
The impact was compounded by a spike in shipping costs for the raw materials, which are sourced from Asia.
Blue Power says these challenges were partly offset by the successful launch of higher-margin specialty and plant-based soap products.
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