Singapore – 14th August 2008 - Cerebos Pacific Limited today announced a steady 3rd Quarter performance with 4% higher turnover at S$191.8 million compared to S$183.7 million in the previous corresponding period.
Results Overview
* 3Q Turnover +4% at S$191.8 million
* 3Q Earnings -20% at S$15.7 million
* 9 Months Turnover +9% at S$611.4 million
* 9 Months Earnings -6% at S$61.1million
Excluding the exchange loss of S$15.0 million, 3rd Quarter turnover would have been 13% higher. Due to planned strategic investments in A&P, R&D and technology, Operating profit for Q3 FY 2007/08 was lower than the previous corresponding period at S$22.7 million (FY 2006/07 Operating Profit : S$26.7 million) exaggerated by unfavourable exchange translation. Earnings came in at S$15.7 million (FY 2006/07 earnings : S$19.6 million).
President & CEO, Mr Eiji Koike said: “Cerebos has continued to perform according to our planned mid-term strategy to boost top-line growth. By focusing and investing in our established brands, we are reinvigorating them and creating more excitement. We understand that enhanced brand image and reputation is key to generating better consumer relevance and consequently offtake .
In Asia, BRAND'S® health supplements sales for the 3rd Quarter rose 7% compared to last year with Thailand and Malaysia continuing to lead the way. Excluding the exchange translation impact of S$10.3 million, Health Supplements sales would be 18% higher. BRAND’S® is building good momentum going into the final quarter. We continue to keep consumers engaged and leverage on integrated, innovative consumer-focused marketing campaigns such as the 1st BRAND’S® Asia Pacific Sudoku Championships, the ‘Drink chilled’ initiative and also endorsement by celebrities.
In Australasia, sales grew 2% compared to last year, led by gravies and sauces in the Foodservice division and overall by the coffee and tea categories. Excluding the exchange translation impact of S$4.7 million, Australasia sales would be 7% higher. Successful consumer oriented intitiatives include the launch of Gravox® Gourmet range and the Robert Harris® ‘What Inspires You’ campaign and mini-film television commercial.
To underline our expected growth trend, particularly in Asia, I am pleased to note that on 8th August at 8:08 am, Cerebos held a groundbreaking ceremony for its new factory in Pinthong Industrial Park in Thailand. Expected to be fully operational by end 2009, this addition will enable a fivefold increase to BRAND’S® total production capacity.”
For the first nine months ended 30 June 2008, Cerebos Group turnover was up 9% at S$611.4 million (FY 2006/07 : S$559.3 million). Turnover would have improved by 11% if the translation loss of $8.6 million was excluded. Earnings for the first nine months was S$61.1 million (FY 2006/07 : S$65.3 million).
On the outlook for the full year, Mr Koike said : “Like many international businesses, the Group's results will always be subject to foreign exchange movements. Adjusting for the translation impact, the results for the 3rd quarter and first 9 months reflect the Group’s stated strategy of growing turnover while continuously investing in brand building, research & development and capacity expansion.
The world economic environment has changed since the last quarter. High oil and raw material prices, weakening economic sentiment and political uncertainties continue to affect consumer spending and business performance. Nevertheless, the Group will continue with its strategy to improve long term shareholder value.”