Super Coffeemix Manufacturing, the manufacturer and distributor of instant coffee and convenience food products, posted a 55% jump in net profit to $40.4 million for the financial year ended Dec 31 2009 (FY09) due to higher gross profit margin and a net gain from investment securities.

This occurred despite a 1% decrease in revenue to $296.3 million in FY09 from $300.2 million in FY08 mainly due to lower demand from the Mongolia, South Africa and Commonwealth of Independent States (CIS) markets. However, the group’s core markets of Southeast Asia and East Asia continued to perform well and grow.

The group’s gross profit margin increased to 34.9% in FY09 from 33.2% in FY08 mainly due to production efficiency and better cost controls. The higher gross profit margin, coupled with the increase in other income, boosted the group’s profit from operating activities by 16% to $41.7 million in FY09 from $36.1 million in FY08.

For FY09, the group also recorded a net gain from investment securities of $2.1 million. This reversed the net loss from investment securities of $5.4 million in FY08 and provided a further contribution to the group’s net profit.

The group recorded an increased cash and cash equivalents of $70.5 million as compared to S$25.8 million for the previous corresponding year.

Super Coffeemix Manufacturing is proposing a final dividend of 2 cents per share. Together with the interim dividend 0.6 of cent per share, the dividend for FY09 totals 2.6 cents per share, or an increase of 62.5% from the dividend of 1.6 cents per share in FY08.