"Weak" global consumption of chocolate hit profits at Singapore chocolate and cocoa group Petra Foods in the third quarter.
Petra said its cocoa ingredients division started the year on a "positive" note but said the industry is facing "significant headwinds". Margins are coming under pressure from "an excess capacity/supply situation at a time of weaker chocolate consumption globally", it said.
As a result, the division recorded a 57.8% drop in third-quarter EBITDA. Sales were down 25.8%.
However, Petra's consumer division fared better. It recorded a sales increase of 12.3% to $117.6m, with EBITA of $22m, up 45% on last year.
Nevertheless, group earnings in the three months to the end of September amounted to US$10.5m, a 24.5% decline on the prior-year period. EBITDA slid 7.4% to $28.7m. Group sales declined 6.5% to $359.9m.
Over the first nine months of 2012, net profit edged up 1.1% to $42.2m, while EBITDA was up 3% at $97.1m. Sales grew 12% to reach $1.14bn.
US$42.6 million for 9 months of 2012 Group's performance boosted by Branded Consumer's strong performance in key markets of Indonesia and the Philippines
SINGAPORE - 8 November 2012 - Petra Foods Limited ("Petra Foods" or the "Group"),one of the world's major manufacturers and suppliers of cocoa ingredients and branded consumer confectionery products, today reported a net profit attributable to shareholders of US$42.6 million for the 9 months ended 30 September 2012.
This was achieved on the back of Group revenue reaching US$1.14 billion, boosted by the Branded Consumer Division's strong Own Brands sales in its key markets of Indonesia and the Philippines. The Group's Cocoa Ingredients Division continued to face significant margin pressure as a result of headwinds that are affecting the global cocoa ingredients industry, especially in the generic segment.
Said Mr John Chuang, Petra Foods' Chief Executive Officer: "The consumption environment in our regional markets, particularly Indonesia and the Philippines, is expected to remain vibrant, thanks to strong regional economies and fast-growing middle income populations.
We will continue to tap these growth opportunities by extending the market reach of our Branded Consumer products through our brand-building efforts, new product offerings, as well as diversification into new product categories. We will also expand our regional distribution network to support our growth in these markets."
