Synthetech posts 220% rise in Q1 op income

- Last updated on GMT

Related tags: Generally accepted accounting principles, Material

The declining cost of raw materials helped Synthetech post a 220 per cent increase in operating income in the first quarter of its fiscal year, despite its revenues dropping.

Synthetech’s dramatic rise in operating income, which totalled $1m for the quarter, can in part be attributed to a 26.9 per cent decline in the cost of revenue.

The fine chemical company specialises in organic syntheses, biocatalysis and chiral technologies and these sectors have been helped by Synthetech’s actions and more favourable market conditions.

Declining raw material costs, more favourable product mix and improved throughput and efficiencies were all cited as reasons for the decline in outgoings.

Furthermore, Synthetech anticipates its cost cutting measures will take full effect in the next quarter but warned that the inherently volatile nature of the sector makes predictions difficult.

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