A Look at Petra Foods’ Earnings

Petra Foods logo Petra Foods Limited (SGX: P34) saw its revenue for second quarter of 2013 (2Q 2013) rise by 3.5% to US$125.6 million as compared to 2Q 2012. The company divested its Cocoa Ingredients business to Barry Callebaut AG on 30 June 2013. The net profit from the continuing operations (without considering the Coca Ingredients business) for 2Q 2013 was at $14.8 million, up 7.5%.

For first-half of 2013 (1H 2013), the revenue was up 5.6% to US$253.0 million. The net profit from the continuing operations was up at $28.9 million, an increase of 13.3%. The net profit increased significantly due to a “vibrant regional consumption environment and continuing investments in brand development, an expanded distribution network, as well as 29 new product launches in the last 12 months.

Considering the discontinued operations, the company saw a net loss of $10.1 million for 1H 2013. The performance of the divested Cocoa Ingredients business was impacted due to “headwinds affecting cocoa ingredients suppliers globally.

Mr John Chuang, Petra Food’s Chief Executive Officer, said: “With the successful divestment of the Cocoa Ingredients business and the strong performance of our Branded Consumer business, we are in an ideal position to seize growth opportunities in the fast growing regional consumer markets. Despite volatility in the regional currencies and input costs, we expect another year of growth for our Branded Consumer Division in 2013. The region’s vibrant economies and fast growing middle income classes are trends that work in our favour and we will continue to capitalize on them as we continue our strategic focus to drive growth and profitability in our key consumer markets.”

The company declared an interim dividend of 2.36 US cents (2.98 Singapore cents) per share which is a 13% increase over the previous year. The shares closed at $4.00 on 14th August 2013.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.