JB Foods has registered 1HFY2024 profit of US$36.1 million ($47.49 million) in 1HFY2024, surging 331% higher compared to the previous corresponding period.
The company posted a revenue of US$453.3 million in 1HFY2024, up 67.2% y-o-y fuelled by the increase in average selling price (ASP) and shipment volume.
The cost of sales also increased by 62.5% y-o-y to US$391.2 million, mainly due to increases in cocoa bean prices.
There is an unrealised fair value mark-to-market gains of US$38.8million on the derivative financial instruments relating to hedging activities on the company’s forward sales and purchase contracts, which was recognised as at June 30 due to sharp volatility in cocoa bean prices.
The realisation of this fair value unrealised gains or potential losses and corresponding impact will be subjected to the prevailing cocoa market price during the settlement date, the company says.
Accordingly, JB Foods’ gross profit has increased by 103.6% y-o-y to US$62.1 million.
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Finance costs increased by 113% y-o-y to US$11.8 million, mainly due to an increase in the trade bills utilisation resulting from higher cocoa bean prices, higher financing interest rate and additional financing costs incurred on the sukuk and term loan on the construction in progress in its Ivory Coast factory.
The company has declared an interim dividend of 0.2 cents per share, which would be paid out in September.
JB Foods expects the business environment to continue to be challenging due to shortage of the cocoa bean supply and unprecedented sharp volatility of the cocoa bean prices. This may impact its processing margin and result in potential losses on its hedging activities.
Shares in JB Foods closed 1 cent higher or 2% up on Aug 14 at 50 cents.
