SINGAPORE (Nov 13): Cocoa ingredients producer JB Foods saw its earnings surge almost fivefold to US$4.6 million ($6.3 million) in the 3Q ended September, from US$982,000 a year ago.
Quarterly revenue grew 8.5% to US$75.8 million, from US$69.9 million a year ago.
This was mainly due to higher shipment volume, partially offset by the lower average selling price to the group’s customers arising from lower cocoa bean prices.
Gross profit more than trebled to US$9.1 million in 3Q17, from US$2.6 million a year ago on the back of improvements in processing margin.
As at end September, cash and cash equivalents stood at US$15.8 million.
JB Foods has declared an interim dividend of 2 cents per share for the current period. There was no dividend declared in the corresponding period last year.
“We will continue to manage our business risks, strive to grow our business profitably, and to expand our global footprint through collaboration with our business partners or acquisitions when the opportunity arises,” says CEO Tey How Keong.
Looking ahead, the group says it expects the strong momentum, demand for cocoa ingredients and improved business sentiments to continue into the first half of 2018.
Shares of JB Foods closed half a cent higher at 38.5 cents on Monday.
