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12-11-2011, 05:48 AM
Business Times - 12 Nov 2011
Cerebos posts 11% drop in Q3 profit to $20.6m
By VEN SREENIVASAN
HIGHER commodity prices and operating costs, coupled with a product recall in Taiwan depressed mainboard-listed Cerebos Pacific's third-quarter earnings by 11 per cent to $20.6 million, from $23.2 million a year ago.
Revenue for the July-September period was flat at $238.5 million, compared to $239.2 million previously.
For the nine months ended September, Cerebos posted a profit attributable to shareholders of $66 million, almost unchanged from last year's $66.1 million. Revenue rose 5 per cent to $700 million, from $665.4 million a year ago.
Earnings per share for the quarter under review came to 6.51 cents, down from 7.35 cents previously. For the nine months, EPS slipped to 20.85 cents from 20.99 cents.
The company's flagship Brand's family continued to do well during the quarter, with sales rising 6 per cent compared to last year despite the Taiwan nationwide food contamination scare which forced the company to recall its health supplement tablets.
Cerebos's food & coffee division's Q3 sales was down 8 per cent, mainly due to the discontinuation of the Riva instant coffee range and lower sales from the sauces category in Australia. Excluding the exchange translation gain of $1.2 million, Australasia sales would have been 9 per cent lower.
Operating profit for the food & coffee division declined by 38 per cent due to lower sales and increased costs of commodities.
Commenting on the results, president & group CEO Eiji Koike said that, overall, Cerebos's Q3 performance had been satisfactory amid the difficult economic environment.
'Sales of coffee and sauces ebbed slightly but our flagship Brand's range of health supplements provided continued growth,' he said. 'In line with our long-term strategic plan, we focused investments on areas where we could further strengthen our already established brand image and our reputation for high quality.'
Looking ahead, he said that the fourth quarter year would prove difficult.
'In addition to the global economic environment and increase in commodity prices, the group's results will be significantly affected by the flooding in Thailand. The impact should be for the short term and the outlook for the group's business remains positive over the mid-to-long term.'
The company had cash of some $108.1 million as at the end of September, compared to $142.5 million a year ago.
Cerebos posts 11% drop in Q3 profit to $20.6m
By VEN SREENIVASAN
HIGHER commodity prices and operating costs, coupled with a product recall in Taiwan depressed mainboard-listed Cerebos Pacific's third-quarter earnings by 11 per cent to $20.6 million, from $23.2 million a year ago.
Revenue for the July-September period was flat at $238.5 million, compared to $239.2 million previously.
For the nine months ended September, Cerebos posted a profit attributable to shareholders of $66 million, almost unchanged from last year's $66.1 million. Revenue rose 5 per cent to $700 million, from $665.4 million a year ago.
Earnings per share for the quarter under review came to 6.51 cents, down from 7.35 cents previously. For the nine months, EPS slipped to 20.85 cents from 20.99 cents.
The company's flagship Brand's family continued to do well during the quarter, with sales rising 6 per cent compared to last year despite the Taiwan nationwide food contamination scare which forced the company to recall its health supplement tablets.
Cerebos's food & coffee division's Q3 sales was down 8 per cent, mainly due to the discontinuation of the Riva instant coffee range and lower sales from the sauces category in Australia. Excluding the exchange translation gain of $1.2 million, Australasia sales would have been 9 per cent lower.
Operating profit for the food & coffee division declined by 38 per cent due to lower sales and increased costs of commodities.
Commenting on the results, president & group CEO Eiji Koike said that, overall, Cerebos's Q3 performance had been satisfactory amid the difficult economic environment.
'Sales of coffee and sauces ebbed slightly but our flagship Brand's range of health supplements provided continued growth,' he said. 'In line with our long-term strategic plan, we focused investments on areas where we could further strengthen our already established brand image and our reputation for high quality.'
Looking ahead, he said that the fourth quarter year would prove difficult.
'In addition to the global economic environment and increase in commodity prices, the group's results will be significantly affected by the flooding in Thailand. The impact should be for the short term and the outlook for the group's business remains positive over the mid-to-long term.'
The company had cash of some $108.1 million as at the end of September, compared to $142.5 million a year ago.
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