• FY profits slide by 57% to US$25.9m
  • Net sales rise by 13.8% to $477.7m
  • EBITDA up by a third to $84.8m

Petra Foods has seen full-year profits slide by 57% due to difficult trading conditions and one-off charges related to its soon-to-be-sold cocoa ingredients business.

For the 12 months to the end of December, Singapore-based Petra saw net profits were US$25.9m, down 57.2% on the previous year. The group sank to net losses of $16.7m in the fourth-quarter, versus profits of $18.4m in the same period of 2011.

Petra said it took a $27.5m charge connected to the planned divestiture of its cocoa ingredients business.

The unit also continued to come under margin pressure, and sank to net losses of $28.6m for the full-year, from profits of $21.2m a year earlier.

John Chuang, Petra's CEO, said the proposed sale of the cocoa ingredients arm will enable the group focus on its better-performing branded consumer business. It will focus on rising demand for chocolate and confectionery in South East Asia.

A strong showing from Petra's branded and consumer food arm enabled it to increase overall net sales by 13.8% in 2012, to $477.7m. EBITDA rose by almost a third, to $84.8m.

Excluding the cocoa ingredients business, net profits jumped by 38.6%, to $54.5m.

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Petra Foods Limited FY 2011 Results
Page 1 of 5
(Registration no. 198403096C)
FOR IMMEDIATE RELEASE
Petra Foods’ reports net profit of
US$25.9 million for FY2012
?
Strong performance achieved by Branded Consumer Division with net profit higher
38.6% Year-on-Year
?
Final cash dividend of 1.86 US cents is proposed, lifting total dividend for the year to
3.97 US cents
Financial Highlights
(US$ Million)
4Q ended 31 December
Year ended 31 December
2012
2011
% Change
2012
2011
% Change
BRANDED CONSUMER
Revenue
119.9
101.5
?
18.1 477.7 419.8
?
13.8
EBITDA
23.1 19.5
?
18.3 84.8 63.8
?
32.9
Net Profit
14.7
13.5
?
9.1
54.5 39.4
?
38.6
Net (loss)/profit from to-be
divested Cocoa Ingredients
1
(31.4) 4.9 NM (28.6) 21.2 NM
Group Net Profit
(16.7) 18.4 NM 25.9 60.6
?
57.2
1
Impacted by additional provisions and excepti
onal charges totalling US$27.5 million, net of tax
SINGAPORE
-
27 February 2013
-
Petra Foods Limited
(“Petra Foods” or the “Group”),
today announced that the Group achieved net profit attributable to shareholders of US$25.9
million for the full year ended 31 December 2012 (“FY2012”). The Group’s Branded
Consumer Division produced a strong performance as it further strengthened and developed
its presence in all its markets supported by the strong regional consumption. However, the
challenging operating environment for the to-be divested Cocoa Ingredients Division,
especially in margin compression, together with a US$27.5 million charge for additional
provisions and exceptional charges relating to the planned divestiture of the Division led to a
more muted overall result for the Group.
Based on the weighted average number of ordinary shares in issue, earnings per share for
FY2012 decreased to 4.25 US cents while net asset value per share as at 31 December
2012 stood at 53.7 US cents.
Petra Foods Limited FY 2011 Results
Page 2 of 5
(Registration no. 198403096C)
SEGMENTAL REVIEW
Branded Consumer Division
Financial Highlights
(US$ Million)
3 months ended 31 December
12 months ended 31 December
4Q 2012
4Q 2011
% Change
Y-o-Y
FY2012
FY2011
% Change
Y-o-Y
Indonesia
84.6
72.9
?
16.0 353.3
304.8
?
15.9
The Regional Markets
35.3
28.6
?
23.5 124.4
115.0
?
8.1
Total Branded Consumer
Revenue
119.9
101.5
?
18.1 477.7
419.8
?
13.8
Gross Profit Margin (%)
31.5% 32.2%
?
1.7% pt 31.9% 30.6%
?
1.3% pt
EBITDA
23.1
19.5
?
18.3 84.8
63.8
?
32.9
With its key strategies of strengthening and further developing its presence in all key
markets, the Branded Consumer Division achieved excellent performance in both Indonesia
and the regional markets, resulting in a 13.8% Y-o-Y growth in revenue and a 32.9% Y-o-Y
increase in EBITDA. The key drivers fuelling this growth were the vibrant consumption
environment in the Group’s key markets; strong gains from the 34 new products launched
during FY2012 and also the Group’s expanded distribution network which boosted Own
Brands sales by 16.7% Y-o-Y.
One of the Group’s key markets, Indonesia, registered revenue growth of 15.9% Y-o-Y to
US$353.3 million, principally due to the strong sa
les performance of its premium products in
the Group’s Own Brands segment. Indonesia’s robust consumption demand, coupled with
the Group’s scaled-up distribution efforts and infrastructure, have contributed towards the
growth in Petra Foods’ performance in Indonesia.
The Regional Markets - comprising the Philippines, Malaysia and Singapore - posted 8.1%
Y-o-Y revenue growth to US$124.4 million for FY2012 compared to US$115 million in the
preceding year. The Group’s performance in the Philippines was particularly impressive with
double digit revenue growth due to aggressive new product launches supported by the
expansion of distribution coverage and higher
levels of investments in brand development
programmes.
Petra Foods Limited FY 2011 Results
Page 3 of 5
(Registration no. 198403096C)
Cocoa Ingredients Division (to-be divested)
Financial Highlights
(US$ Million)
3 months ended 31 December
12 months ended 31 December
4Q 2012
4Q 2011
% Change
Y-o-Y
FY 2012
FY 2011
% Change
Y-o-Y
EBITDA
(12.2) 15.8 NM 23.1 65.8
?
64.9
EBITDA/mt in US$
(180)
242
NM 90
248
?
63.6
EBITDA/mt in US$
(excluding inventories write-
down and provision)
81 242
?
66.6 160 248
?
35.7
Sales volume (mt)
67,942
65,359
?
4.0 255,872
265,053
?
3.5
During the course of the year, Petra Foods received several offers to acquire its Cocoa
Ingredients business and it was after a comprehensive evaluation process and long
deliberation period that the Board approved the Conditional Agreement with Barry Callebaut
for the Proposed Divestment of the business. The SPA was signed on 12 December 2012
for total consideration of US$950 million, subject to adjustments at completion.
In arriving at the strategic rationale for the Divestment, the Board of Petra Foods took into
consideration: (1) the significant investments (from a capital as well as human resource
standpoint) required if the Group were to continue growing the business organically; and (2)
the higher returns and lower risks through re-deploying the capital in its Branded Consumer
Division.
For FY2012, EBITDA decreased 64.9% Y-o-Y to US$23.1 million due to the continued
deteriorating negative pressures affecting all global cocoa ingredients suppliers. Also, the
Group is recognising an exceptional charge totalling US$14 million net of tax in this financial
year, owing to the Proposed Divestment of the Division.
Business Prospects
Commenting on the year’s performance, Petra Foods’ Chief Executive Officer, Mr John
Chuang said, “With the proposed divestment of the Cocoa Ingredients business, this will be a
significant change for Petra Foods. We will now be able to focus exclusively on growing our
Branded Consumer business where the combined strengths of our market leading Brands,
product innovation and distribution together with
the growing regional markets will drive the
growth.”
Petra Foods Limited FY 2011 Results
Page 4 of 5
(Registration no. 198403096C)
As the South East Asia remains a fast growing region for chocolate confectionery market
with rising affluence of the young population, the Group’s strategic focus will be on driving
growth and profitability in this region which we already have first-mover advantage. New
product launches and brand building efforts will be key to tapping on these rising
opportunities. Barring any unforeseen circumstances, the Group expects FY2013 to be
another year of growth for the Group’s Branded Consumer Division.
Final Dividend
The directors have proposed a final dividend of 1.86 US cents per share subject to
shareholders’ approval at the Annual General Meeting on 30 April 2013. If approved, the
dividend will be paid on 21 May 2013.
Inclusive of the interim dividend of 2.11 US cents, shareholders would receive a total
dividend of 3.97 US cents in respect of FY2012.
# # #
Petra Foods Limited FY 2011 Results
Page 5 of 5
(Registration no. 198403096C)
ABOUT PETRA FOODS LIMITED
Listed on the SGX-ST since 5 November 2004, Petra
Food Limited and its subsidiaries (“the Group”)
is one of the world’s major manufacturers and suppl
iers for premium cocoa ingredients, namely cocoa
powder, cocoa butter and cocoa liquor. The Group
also manufactures and/or distributes branded
consumer products, primarily chocolate confectioner
y products, for which it is the market leader in
Indonesia.
The Group has two business divisions,
Cocoa Ingredients
and
Branded Consumer.
Cocoa Ingredients Division
The Group manufactures and sells cocoa ingredients, under the “Delfi” brand, to over 30 countries
worldwide. Its major customers are international food and beverage companies such as Nestlé,
Cadbury, the Mars Group, Arnott’s, A.B.
Foods, Barry Callebaut and the Meiji Group.
Branded Consumer Division
The Group manufactures and/or distributes branded consumer products that are sold in over 17
countries including Indonesia, Singapore, Malaysia,
Hong Kong, Australia, Thailand, the Philippines
and China. Petra Foods has an established portfolio
of chocolate confectionery brands which are
household names in Indonesia include 10 master brands and 20 key sub brands and manufactures
over 300 stock keeping units. Its flagship brands
in Indonesia include “SilverQueen” and “Ceres” that
were introduced in the 1950s and “Delfi” in the 1980s. In addition, the Group also distributes a well-
known portfolio of 3
rd
Party brands in Indonesia, Singapore and Malaysia.
Headquartered in Singapore, Petra Foods has seven
cocoa processing facilities (located in Indonesia,
Malaysia, the Philippines, Thailand, Brazil, Mexico
and Germany), one cocoa butter facility (located in
France), two chocolate confectionery production faci
lities (located in Indonesia and the Philippines)
and a total staff strength of close to 6,000.
Petra Foods was awarded the top spot in the annual Singapore Enterprise 50 Award in 2003. In
addition, it was recognised as the "Best Newly Li
sted Singapore Company in 2004" in AsiaMoney's
Best Managed Companies Poll 2004. Petra Foods was named the “Enterprise of the Year 2004” by
the 20
th
Singapore Business Awards on 30 March 2005
and was named one of “Singapore’s 15 Most
Valuable Brands” in November 2005 by IE Singapore.
Petra Foods won a Silver award fo
r its inaugural annual report in
the “Best Annual Report/Newly
Listed Company” category in 2006 at the Singapore Co
rporate Awards. In April 2009, it clinched a
Gold award in the “Best Annual Report/
Companies with $300 million to
less than $1 billion in market
capitalisation” category. In May 2010, it bagged
two Silver awards for “Best Managed Board” and
“Best Investor Relations” under the “companies with
$300 million to less than $1 billion in market
capitalisation” category. In
Issued on behalf of
Petra Foods Limited

Original source: http://petrafoods.listedcompany.com/newsroom/20130227_013455_P34_056C00B4BD5B78CD48257B1E00602BE4.2.pdf