Singapore-based confectioner Petra Foods today (16 May) reported higher underlying first-quarter profits thanks to improved sales and margins from what is now its core consumer products business.
Petra is in the process of selling its cocoa ingredients arm to Barry Callebaut. Charges linked to the deal and losses from that business amid over-capacity in the sector meant Petra swung to a group loss of US$14.9m for the three months to March. Last year, it made a profit of $16.3m.
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However, stripping out the cocoa ingredients business, which Petra now classifies as discontinued operations, earnings from the company’s remaining business – its consumer operations – were up 20% at $14.1m.
Petra reported higher sales from its largest market – Indonesia – and in smaller “regional” markets. Total consumer sales were up 7.7% at $127.4m.
The cocoa ingredients unit made a net loss of $29m, compared to a profit of $4.6m in the first quarter of last year.
Petra pointed to an “over supply of capacity” and “weaker chocolate consumption”, which it said was affecting all cocoa ingredients businesses worldwide.
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By GlobalDataThe company said the sale of the business to Barry Callebaut is set to be completed by the end of July.
Click here for recent comments from Barry Callebaut’s management, which played down concerns over the deal with Petra amid the challenges seen in the cocoa ingredients sector.
