“Weak” global consumption of chocolate hit profits at Singapore chocolate and cocoa group Petra Foods in the third quarter.
Petra said its cocoa ingredients division started the year on a “positive” note but said the industry is facing “significant headwinds”. Margins are coming under pressure from “an excess capacity/supply situation at a time of weaker chocolate consumption globally”, it said.
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As a result, the division recorded a 57.8% drop in third-quarter EBITDA. Sales were down 25.8%.
However, Petra’s consumer division fared better. It recorded a sales increase of 12.3% to $117.6m, with EBITA of $22m, up 45% on last year.
Nevertheless, group earnings in the three months to the end of September amounted to US$10.5m, a 24.5% decline on the prior-year period. EBITDA slid 7.4% to $28.7m. Group sales declined 6.5% to $359.9m.
Over the first nine months of 2012, net profit edged up 1.1% to $42.2m, while EBITDA was up 3% at $97.1m. Sales grew 12% to reach $1.14bn.
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By GlobalData
