SINGAPORE (Aug 13): Cocoa ingredients producer JB Foods has posted a 2.2% decline in earnings to US$8.4 million ($11.6 million) or 2.8 US cents per share for the 2Q19 ended June, from US$8.6 million a year ago.
The decline was mainly attributable to other losses of US$0.1 million in 2Q19, compared to other gains of US$1.4 million in 2Q18, as a result of foreign exchange losses.
2Q19 revenue rose 9.3% to US$80.9 million, from US$74.0 million a year ago, on the back of stronger customer demand.
Gross profit jumped 14.5% to US$15.1 million due to higher shipment volume, as cost of sales rose at a slower clip of 8.2% compared to the revenue increase.
Finance costs climbed 59.4% to US$1.1 million in 2Q19, compared to US$0.7 million a year ago. This was mainly due to higher trade bills utilisation arising from the higher cocoa bean inventories.
As at end June, cash and cash equivalents stood at US$9.8 million.
The board has proposed an interim dividend of 1.00 cent per share for 1H19 – the same as a year ago – to be paid on Sept 5.
“The demand for confectionery and chocolate products has been growing, boding well for us and the cocoa ingredients industry in general. Going forward, we will continue to expand our presence in existing and new markets while keeping an eye on developments in the industry,” says Tey How Keong, CEO of JB Foods.
Shares in JB Foods closed flat at 61 cents on Tuesday before the results announcement.
