On Friday KBS Fashion Group Limited (NASDAQ: KBSF) has shown upward move of +6.64% and ended the last trade at $2.41. The trading volume was recorded to 9,573 shares as compared to average traded volume of 32,958 shares.

KBS Fashion Group Limited (NASDAQ: KBSF), recently reported its unaudited financial results for the first quarter ended March 31, 2019.

Revenues

• Total revenues increased by $0.16M, or 3.5%, to $4.62M for the first quarter of 2019 from $4.46M for the same period of last year. The increase was mainly contributable to the increased orders from OEM section.

Revenues from the Company’s distribution network reduced by $0.87M, or 22.3%, to $3.04M for the first quarter of 2019 from $3.91M for the same period of last year. Distribution network contributed 65.9% of total revenues for the first quarter of 2019, contrast to 87.8% for the same period of last year.

Revenues from corporate store sales increased by $0.02M, or 13.3%, to $0.17M for the first quarter of 2019 from $0.15M for the same period of last year. We presently have one corporate store operated directly by us, sales of which accounted for 3.8% of total revenues for the first quarter of 2019, contrast to 5.5% for the same period of last year.

Revenues from OEM sales increased by $1.00M, or 247%, to $1.40M for the first quarter of 2019 from $0.4M for the same period of last year. OEM accounted for 30% of total revenues for the first quarter of 2019, contrast to 7% for the same period of last year.

Cost of Sales and Gross Profit

Total cost of sales reduced by $0.37M, 11.0%, to $3.00M for the first quarter of 2019 from $3.38M for the same period of last year. The decrease in cost of sales was primarily Because of higher products pricing strategy this year comparing same period of last year.

Total gross profit increased by $0.52M, or 48.3%, to $1.61M for the first quarter of 2019 from $1.09M for the same period of last year. Gross profits for distribution network, corporate stores and OEM were $0.97M, $0.07M, and $0.58M, respectively, for the first quarter of 2018, contrast to $0.89M, $0.06M, and $0.14M, respectively, for the same period of last year.

Operating Expenses and Operating Income (Loss)

Distribution and selling expenses reduced by $0.43M, or 59.1%, to $0.30M for the first quarter of 2019 from $0.73M for the same period of last year.

Administrative expenses reduced by $1.53M, or 63.8%, to $0.87M for the first quarter of 2019 from $2.40M for same period of last year.

Other operating expenses, including other income and other gains and loss, totaled $95,314 for the first quarter of 2019, contrast to $30,354 for the same period of last year. Operating profit was $0.54M for the first quarter of 2019, contrast to operating loss of $2.01M for the same period of last year.

Income (Loss) before Income Taxes

Profit before income taxes was $0.31M for the first quarter of 2019, contrast to loss before taxes of $2.04M for the same period of last year.

Income tax expense was $0.22M for the first quarter of 2019, contrast to income tax gain of $0.14M for the same period of last year.