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&rsquo 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&rsquo gross profit has increased by 103.6% y-o-y to US$62.1 million.

 

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.

On Jul 11, JB Foods : BEW 0% non-independent, non-executive director and vice-chairman Goi Seng Hui also acquired 75,000 shares at S$0.51 per share. With a consideration of S$38,250, the acquisition increased his total interest in the company from 24.54 per cent to 24.56 per cent.

 

JB Foods is a major cocoa ingredients producer with operations spanning Asia-Pacific (China, Indonesia, Malaysia, and Singapore), Europe, North America and West Africa, and a cocoa bean processing capacity of 180,000 tonnes per year.

 

On Jul 5, JB Foods executive director Goh Lee Beng acquired 3,600 shares at S$0.51 per share, maintaining her direct interest in the company at 1.67 per cent.

 

She also maintains a 45.52 per cent deemed interest in JB Foods through the shares held by JB Cocoa Group.

 

Effective Jul 1, JB Foods appointed Lim Tong Tee as an independent director of the company, following the cessation of Michael Chua Cheow Khoon as lead independent director and chairman of the company.

 

This has also seen Chin Koon Yew redesignated as lead independent director and chairman of the company.

On Apr 10, JB Foods : BEW 0% non-independent, non-executive director and vice chairman Sam Goi acquired 111,900 shares of JB Foods at S$0.52 per share. With a consideration of S$58,188, the acquisition increased his total interest in the company from 24.50 per cent to 24.53 per cent. JB Foods is a major cocoa ingredients producer with operations spanning Asia-Pacific (China, Indonesia, Malaysia, and Singapore), Europe, North America and West Africa, and a cocoa bean processing capacity of 180,000 tonnes per year. Goi is the executive chairman of Tee Yih Jia Food Manufacturing Pte Ltd, and three SGX Mainboard-listed companies &ndash GSH Corporation, PSC Corporation and Tat Seng Packaging Group. He also serves as vice chairman of Envictus International, as well as non-executive and non-independent director of Catalist-listed Tung Lok Group Restaurants (2000).

On Mar 14, Goi also acquired 41,400 shares of JB Foods : BEW 0% at S$0.52 per share. With a consideration of S$21,528, the acquisition increased his total interest in the company from 24.48 per cent to 24.50 per cent.

 

Goi has been the non-independent, non-executive director and vice-chairman of JB Foods since March 2013.

 

JB Foods is a major cocoa ingredients producer with operations spanning the Asia-Pacific (China, Indonesia, Malaysia, and Singapore), Europe, North America and West Africa, and a cocoa bean processing capacity of 180,000 tonnes per year.

 

On Feb 27, JB Foods announced its group revenue for FY22 (ended Dec 31) increased 13.6 per cent to US$509.6 million from FY21, fuelled by growth in demand for cocoa ingredients, which saw a marked increase in the higher shipment volume.

 

The group added that its ability to mitigate the supply chain disruption challenges had contributed to the group&rsquo s profitability for FY22, with profit after tax growing 20.5 per cent from FY21, to US$16.7 million.

 

FOR the five trading sessions that spanned Mar 10 to Mar 16, the Straits Times Index declined 1.8 per cent with the Hang Seng Index declining 3.9 per cent and the FTSE Bursa Malaysia KLCI declining 3.7 per cent.

 

Institutions were net sellers of Singapore stocks over the five sessions with S$107 million of net outflow. UOB : U11 +1.93%, DBS : D05 0%, Yangzijiang Shipbuilding (Holdings) : BS6 0%, Keppel Corporation : BN4 +1.5% and City Developments : C09 +1.12%led the net institutional outflow for the five sessions.

 

Meanwhile, Sembcorp Industries : U96 +0.49%, Wilmar International : F34 +2.21%, Sembcorp Marine : S51 -2.73%, Genting Singapore : G13 +0.95% and OCBC : O39 +0.91% led the net institutional inflow for the five sessions.

 

Share buybacks

There were 23 primary-listed companies conducting share buybacks over the five trading sessions through to Mar 16, with a total consideration of S$23.5 million, more than doubling the preceding week&rsquo s consideration of S$10.6 million.

 

Sembcorp Industries also led the buyback consideration tally for the five sessions, buying more than two million shares at an average price of S$3.95 per share.

 

OCBC again bought back 400,000 shares over the five sessions, with the average price paid at S$12.19 per share for the five sessions through to Mar 16, versus the S$12.59 per share paid for the preceding five sessions.

 

Director and substantial shareholder transactions

The five trading sessions saw more than 100 changes to director interests and substantial shareholdings filed for close to 40 primary-listed stocks.

 

This included 20 company director acquisitions with no disposals filed, while substantial shareholders filed nine acquisitions and three disposals.

On Mar 2, JB Foods : BEW 0% CEO Tey How Keong acquired 120,800 shares at S$0.50 per share. With a consideration of S$60,400, this increased his total interest in the global cocoa ingredient producer from 46.89 per cent to 46.93 per cent.

 

This followed acquisitions of 36,000 shares at S$0.48 per share on Oct 27 and 113,400 shares at an average price of S$0.496 per share between Sep 29 and 30.

 

Tey was appointed to the board in January 2012. With his 25 years plus of experience in the cocoa business, he is responsible for the overall strategic, management and business development of the group.

Cocoa ingredients supplier JB Foods has reported earnings of US$16.7 million for FY2022, up 20.5% from the preceding year' s US$13.9 million.

 

Driven by higher demand for its products, the company' s revenue in the same period was up 13.6% to US$509.6 million - the first time the topline crossed the US$500 million mark.

 

The company plans to pay a final dividend of 1.6 cents, which will bring total payout for FY2022 to 1.8 cents.

 

" We conscientiously partner our worldwide customers to deliver the cocoa ingredients solutions that they require, while simultaneously adapting to their business needs," says CEO Tey How Keong.

 

The company believes that with the pandemic restrictions eased, overall consumption of cocoa has been boosted.

 

" However, the high inflation, high-interest rate environment, and uncertainty in the global economic environment may pose potential headwinds to the group," the company says.

 

JB Foods expects the rest of the current FY2023 to volatile, although it remains optimistic that cocoa consumption will continue to be supported by the recovery of the economic activities following the pandemic and also due to the growing middle-income class over the long term.

On Feb 1, JB Foods : BEW 0% executive director Goh Lee Beng acquired 57,900 shares at S$0.48 per share.

 

With a consideration of S$27,792, this took her direct interest in the company from 1.65 per cent to 1.67 per cent.

 

She also maintains a 45.52 per cent deemed interest in JB Foods through the shares held by JB Cocoa Group. Her preceding acquisition was on May 13, 2022, with 192,000 shares acquired at 49.5 cents per share.

 

Goh has over 25 years of experience in the cocoa business.

 

She is responsible for procurement of raw materials and managing the cocoa trading positions of the group.

 

This includes sourcing of cocoa beans and cocoa ingredients, managing the group&rsquo s cocoa hedging book, monitoring world cocoa trends, and marketing of cocoa butter.

 

JB Foods started as a processor of wet cocoa beans to dry cocoa beans in the 1980s.

 

Today, it has grown to become one of the major cocoa ingredient producers in the world, with a total processing capacity of 180,000 metric tonnes of cocoa beans equivalent per year, with two factories located at the Port of Tanjung Pelepas, a free trade zone in Johor, Malaysia, and in the Maspion Industrial Estates in Gresik, Indonesia, approximately 30km from the Surabaya port.