The shortage of the cocoa bean supply has contributed to a sharp spike in cocoa bean prices to an unprecedented historical high in February 2024, observers CEO Tey How Keong.
Cocoa ingredients seller JB Foods has reported a revenue of US$595.8 million, up 16.9% over the preceding year. However, no thanks to hedging losses, earnings dropped 88.6% y-o-y to US$1.9 million.
In FY2023, the company sold more cocoa ingredients at a higher price. However, the "volatile" cocoa market caused US$12.3 million in fair value mark-to-market losses. The company had to bear higher financing costs as well.
