JB Foods swings into the black with US$59.4 million H1 net profit, declares special dividend

[SINGAPORE] JB Foods posted a net profit of US$59.4 million for the first half ended Sep 30, reversing from a loss of US$51.9 million the year before.

In a business update on Wednesday (Nov 12), the chocolate company noted that it had also achieved record Ebitda of US$89.9 million, in a turnaround from its year-ago loss of US$44.4 million. Ebitda refers to earnings before interest, taxes, depreciation and amortisation.

The mainboard-listed company attributed the improvement to operational enhancements, higher hedging gains, and better margins from customers’ contracts delivered during the period.

This was despite higher administrative expenses arising from increased staff-related costs and performance-based incentives, in line with the group’s stronger financial performance.

Its revenue rose by 57.7 per cent year on year to US$794.5 million, driven mainly by the higher average selling prices of its cocoa ingredient products.

The group announced a special dividend of S$0.028 per share, in addition to an interim dividend of S$0.002 a share. Both will be paid out in December.

In its outlook, the group said that the market for cacao beans continues to experience price volatility, although prices have gradually eased from highs in 2024.

“Global demand for our products has shown signs of stabilisation as manufacturers adjust product formulations and purchasing strategies following the past year’s price surges,” the group added.

However, it warned that the implementation of deforestation regulations by the European Union as well as US tariff measures may introduce some uncertainties to its compliance costs. “The group will continue to monitor market developments closely and remain flexible in its sourcing, pricing and hedging strategies to respond to changing market conditions,” it noted.

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The counter ended 0.9 per cent or S$0.005 higher at S$0.56.