Weakening choc sales has knock-on affect
09 August 2012
Petra Foods received lower revenue from its cocoa ingredients division owing to weakened chocolate demand in developed markets, according to reports
The Singapore Business Times and Confectionery News say that Petra Foods, a supplier of cocoa ingredients, had a net profit for the second quarter ended 30 June 2012 - its profits rose 7.2 per cent from a year ago to US$155.88 million, boosted by the strong growth in its branded consumer segment.
But, added The Times, revenue dipped 12.6 per cent year from a year ago to US$377.88 million due to the lower revenue from its cocoa ingredients division. In contrast, its branded consumer division posted a 14.9 per cent rise in revenue to US$124.34 million.
The Times quoted Petra Foods as saying that the gains in its branded consumer division was "led by higher sales in own brands which grew by 22.2 per cent, boosted by vibrant consumption in its key Indonesia and Philippines markets." The higher sales was attributed to successful brand development programmes, strong gains from the more than 40 new products launched in the last year and increased market penetration of its own brands.
Late last year, Bloomberg Businessweek reported that: “Whatever significant growth there is in chocolate consumption is to be found in developing countries, which generally use a much higher ratio of powder to butter in manufacturing chocolate.”
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