JB Foods, a cocoa ingredients producer, has reported FY2020 revenue of $417.8 million, up 18.5% over FY2019, to thanks to higher selling prices and higher volumes shipped.

However, it incurred higher shipping and storage costs in 4QFY2020. Coupled with higher depreciation costs from new production capacity, higher payroll, and other administrative expenses resulted in lower earnings for FY2020.

For the year ended Dec 31 2020, its earnings dropped 26.3% y-o-y to $19.3 million.

Tey How Keong, CEO of JB Foods, calls 2020 a challenging year, as the overall market consumption and demand and supply chains were disrupted by the pandemic. 

SEE: Cocoa ingredient supplier JB Foods makes clean sweep in all categories

Want our latest Singapore corporate news stories for FREE

Follow our Telegram, Facebook for the latest updates round the clock

“However, I am glad to see that the group’s revenue crossing US$400million milestone, and registered a revenue growth of 18.5% year-on-year leveraging from the customer’s orders secured when we increased our factory processing capacity in year 2019,” he says.

The company plans to pay a final dividend of 1.5 cents, which is on top of 0.5 cents already paid earlier. 

JB Foods expects customer sentiments to remain cautious and thus, it will be “prudent” in executing its strategy. 

“However, the group believes the cocoa consumption environment will continue to be supported by the recovery of the economy after the Covid-19 pandemic and the growing middle-income classes over the long term,” the company adds.

JB Foods closed Feb 25 unchanged at 57 cents.