Malaysia-based confectioner Cocoaland has booked a drop in third-quarter profits, hurt by rising raw-material costs.

For the three months to the end of September, profits slid to MYR437,000 (US$140,922) from MYR3.35m earned last year. The firm attributed the loss to an increase in “certain materials costs” and higher machine commissioning costs.

Group sales, however, climbed 19.1% to MYR37.3bn.

The firm said it foresees that the local food and beverage industry will “remain resilient with intense competition in domestic and overseas markets”.

“Plans have been undertaken to expand production capacity. The board expects that the group will continue its growth for the fourth quarter of 2010,” it said.

Over the first nine months of 2010, profits dropped to MYR5.53m from MYR14.5m last year, although sales rose to MYR103.8m from MYR97.8m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company makes a range of snacks, beverages and confectionery, and has licence agreements to make Wrigley and GlaxoSmithKline products for the Malaysian market.

In August, it was announced that Fraser & Neave Holdings Bhd, the Malaysian arm of food and drink conglomerate Fraser & Neave, had signed a deal to take a 23.1% stake in Cocoaland.

Click here to view the full earnings release.