Cocoaland is also an export play, benefiting from a strong USD .
Chairman's annual report comments:
Any strengthening of US Dollar against the Malaysian Ringgit will serve as an advantage to the Group, albeit not a permanent one. Rising labour cost and volatility of raw material costs will have direct impact on bottom line. Nevertheless, we will deploy our prudent management policy and risk management strategy to mitigate the risks factors and improve our profitability. On a positive note, our gummy products are gaining popularity and experiencing a rapid growth in China, Vietnam, Thailand and Indonesia. Cocoaland is aiming to capture a large portion of these markets which have tremendous growth potentials.
Higher profit before taxation(2015 vs 2014) was recorded as compared to previous year. This is mainly due to higher profit margin sales mix coupled with additional gain on foreign currencies exchange.Review of OperationsDuring the financial year, continued focus was directed towards maximizing the production of its core products with its newly expanded production lines. The expanded production capacity for gummy segment continues to boost supply to support local and overseas expansion.
Gummy products continue to do well and recorded a 13% improvement in sale in fiscal year 2015 compared to the preceding year and is expected to improve further especially for overseas market such as China, Thailand, Vietnam and Indonesia. The export market registered a 23% growth for our own products in the fiscal year 2015 compared to the preceding year. Proactive measures were employed to actively penetrate into the huge potential market in Indonesia via its wholly-owned subsidiary PT Cocoaland Indonesia. Currently it is setting up office and warehouse in Jakarta. Substantial investments will be deployed in advertising and promotion to create better awareness of Cocoaland brands and its products in Indonesia.
It has also successfully secured a contract to manufacture fruit pastilles for GlaxoSmithKline Consumer Healthcare Sdn Bhd, a multi-national pharmaceutical company.
Dependence on raw materials. An estimated 70% of raw materials, such as wheat flour, sugar, yeast, milk powder and soya beans, used in the food processing industry are imported. As such, raw material prices are subject to fluctuations of world commodity markets, and can negatively impact food manufacturers.
Posted by Hk Wong > Nov 23, 2016 10:43 AM | Report Abuse
It has also successfully secured a contract to manufacture fruit pastilles for GlaxoSmithKline Consumer Healthcare Sdn Bhd, a multi-national pharmaceutical company.
WHILE Fraser & Neave Holdings Bhd’s plan to take up a 23% stake in Cocoaland Holdings Bhd has drawn attention because it’s the latest in a series of share acquisitions involving listed food players, there’s another aspect of the F&N-Cocoaland deal that deserves some discussion as well.
In separate announcements to Bursa Malaysia on Thursday, the two Main Market companies disclosed that the agreement for F&N’s proposed subscription of new Cocoaland shares covers board representation. One of the conditions is that F&N is entitled to nominate two persons to sit on the Cocoaland board, including one as an executive director.
That’s standard stuff. When you’re the second largest shareholder in a company and you intend to be more than just a passive investor, it’s prudent and sensible that you have a say in the board decisions and in the running of the business.
What’s interesting though is that the subscription agreement also grants F&N the right to nominate the chief financial officer (CFO) of Cocoaland. It’s rare in corporate Malaysia for strategic investors to insist on having the explicit power to select CFOs of investee companies, more so when the founders of the companies are still in the driver’s seat.
LONDON, Feb 21 (Reuters) SUGAR* March raw sugar futures SBc1 rose 0.12 cents, or 0.59 percent, to 20.42 cents per lb.* Focus remained on upcoming expiry of the March raws contract SBH7 on Feb. 28. * The market was also monitoring weather in Europe, with concerns emerging that a dry winter could delay upcoming beet sowing in some regions and negatively impact final crop maturity, INTL FCStone said in a note. * This could dampen plans by Europe's major producers to bolster output by as much as 20% ahead of the removal of EU quotas in October. * Thailand, the world's second largest sugar producer, will also stop subsidising sugar production and drop domestic control of consumer prices by the end of the year, a Ministry of Agriculture official said on Tuesday. (Full Story)* May white sugar LSUc1 was down $2.80, or 0.51 percent, at $551.50 a tonne.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
harvestent
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Posted by harvestent > 2016-10-25 15:32 | Report Abuse
Up Up Up !!!