SINGAPORE (May 10): JB Foods saw its earnings surge four-fold to US$4.7 million ($6.3 million) for the 1Q ended March, from US$1.2 million a year ago.
1Q18 revenue grew 4.0% to US$74.1 million, from US$71.2 million a year ago.
This was mainly due to strong customer demand, partially offset by the lower average selling price to customers due to pass-through effect of lower cocoa bean prices.
Gross profit jumped 170.1% to US$11.4 million, from US$4.2 million a year ago, on the back of improvements in processing margin.
As at end March, cash and cash equivalents stood at US$28.4 million.
“I am optimistic that the chocolate consumption demand remains strong in 2018 and am confident in the group’s long-term growth prospects,” says Tey How Keong, chief executive officer of JB Foods.
While the group expects the current positive business sentiments and demand for cocoa ingredients to continue into 2H18, it says the high volatility in cocoa bean markets and potential interest rate hike have heightened global economic uncertainties.
It adds that these may negatively impact cocoa and chocolate consumption and pose potential headwinds to the group’s business. As such, the group says it will continue to adopt conservative and prudent measures and strategies.
Shares of JB Foods closed 1 cent lower, or down 1.8%, at 54 cents on Thursday.
