SINGAPORE (Aug 7): JB Foods, one of the major cocoa ingredient producers in Malaysia, reported 2Q earnings surged more than fourfold to US$8.6 million ($11.7 million) from a year ago, bringing 1H earnings to nearly US$13 million.
Group revenue increased 2.6% to US$148 million from a year ago mainly due to the stronger customer demand, partially offset by the lower average selling price to the group’s customers arising from lower cocoa bean prices.
Gross profit more than doubled to US$13.2 million mainly due to higher shipment volume and improvements in processing margin.
There were net other gains of US$1.4 million compared to net other losses of US$0.6 million.
Selling and distribution expenses increased 45.1% from US$1.4 million.
Administrative expenses increased 35.2% to US$2.3 million mainly due to an increase in the group’s headcount and higher payroll cost.
The group has declared an interim dividend of 1 cent per share.
In its outlook, JB Foods says intensifying trade tensions and interest rate hikes may negatively impact cocoa and chocolate consumption and pose potential headwinds to the group’s business.
Shares in JB Foods closed 1 cent higher at 68 cents.
