Latest Financials
Condensed Interim Financial Statements For the six months ended 30 June 2025
Financials Archive
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Condensed Interim Consolidated Income Statement
Note:
(1) Diluted earnings per share for 6 months ended 30 June 2025 and 2024 are the same as basic earnings per share as
there were no potentially dilutive ordinary shares.
(2) EBITDA is earnings before taxes, interest, depreciation and amortisation.
NM - Not meaningful.
Condensed Interim Consolidated Statement Of Comprehensive Income
Condensed Interim Balance Sheets
Review of Performance of the Group
Key Figures for the Group (unaudited)
Review of the Group's 1H 2025 Financial Performance
The Group recorded 1H 2025 revenue of US$259.6 million and PATMI of US$12.2 million in the Group's US Dollar reporting currency. On a constant currency basis, revenue growth would have been flat, while the decline in PATMI would have been 35.7%. The following key factors contributed to the Group's performance:
- Promotional Investment - To drive long-term growth of Own Brands and counter strong competition, we increased our promotional investments in 1H 2025 which led to an increase in our market share in Indonesia, driven mainly by our SilverQueen and Cha Cha brands.
- Agency Brands Performance - Net Sales in 1H 2025 for Agency Brands declined by 5.2% Y-o-Y from softer sales in Indonesia, partially offset by growth in Regional Markets. The decrease in Indonesia was due mainly to reduced promotional spending by some agencies.
- The 3.4% depreciation of the Indonesia Rupiah against the US Dollar in 1H 2025, coupled with higher promotional spending and lower margins from Agency Brands, contributed to a 130 basis points ("bps") decline in our Gross Profit Margin ("GPM") compared to the previous period.
- The non-recurring item pertains to the streamlining of the Group's Philippines manufacturing operations as part of our efforts to enhance long-term profitability of the business.
In 1H 2025, the Group generated net cash from operating activities of US$57.6 million, a Yo- Y increase of US$20.0 million, mainly from continued tight management of our working capital, as well as reflecting our sales cycle, which resulted in lower inventory levels at 30 June 2025 compared to 31 December 2024. The Group's cash position as at 30 June 2025 stood at US$81.6 million, after the dividend payment of US$7.2 million in May, US$5.4 million for capital expenditures and US$4.8 million for the repayment of borrowings during the first six months of the year.
Performance Review by Markets
Indonesia
Our business in Indonesia during 1H 2025 recorded Net Sales of US$162.0 million, reflecting a Y-o-Y decrease of 4.6%. For the period under review, Agency Brands declined 20.9% Y-o- Y while our Own Brands registered a Y-o-Y increase of 2.0%. The increase in Own Brands reflects sustained higher promotion spending aimed at driving long term growth of our key brands and to counter competition in the market.
The Regional Markets
For Regional Markets, 1H 2025 Net Sales reached US$97.6 million, reflecting a 7.2% increase compared to 1H 2024 from growth in both Malaysia and the Philippines.
Review of Profitability
The Group achieved an overall GPM of 27.5% in 1H 2025, a Y-o-Y decline of 130 bps. This was driven by the depreciation of the Indonesia Rupiah against the US Dollar, increased promotional spending and lower margins from Agency Brands.
Excluding the pre-tax non-recurring expense of US$1.0 million related to the streamlining of the Group's Philippines manufacturing operations, EBITDA for 1H 2025 would have been US$25.3 million, representing a Y-o-Y decline of 22.9% instead of the reported 26.0% decline. The reported decline was mainly due to softer Net Sales, the reduction in GPM, and higher operating costs. Consequently, the EBITDA margin stood at 9.4% for the period.
Review of Financial Position and Cash Flow
During the period, the Group continued its disciplined approach to working capital management and generated net cash from operations of US$57.6 million, a Y-o-Y increase of US$20.0 million. Our working capital requirements for 1H 2025 totalled US$143.7 million, a decrease of US$16.9 million compared to the end-2024 figure, from reduced inventories of US$33.0 million that was partially offset by an increase in trade receivables of US$5.1 million and a decrease in trade payables by US$10.9 million. Given the lingering inflation and ongoing supply chain challenges expected across the region, we will continue to closely monitor inventory levels to ensure access to a steady supply of raw materials, ingredients, and other inputs for our products. Moreover, we remain committed to strict control over our working capital.
Of the cash generated from operations during the period, US$5.4 million was allocated to capital expenditures, and advances for purchase of property, plant and equipment, and US$4.8 million for the repayment of borrowings. Our capex expenditures are constantly monitored to market conditions and could be adjusted as necessary.
As at 30 June 2025, the Group's cash and bank deposits stood at US$81.6 million after a dividend payment of US$7.2 million in May of this year. This represents an increase of US$37.9 million, partly driven by the Y-o-Y reduction of U$20.4 million in capital expenditure. We remain confident that our strong balance sheet continues to provide resilience against potential uncertainties ahead.
Compared to 31 December 2024, total assets at 30 June 2024 reached US$445.9 million, an increase of US$17.6 million. This growth was primarily driven by the higher cash balance, partially offset by the reduced inventories. Shareholders' equity increased by US$6.0 million, supported by higher retained earnings and a favourable movement in the foreign currency translation reserve.
Commentary
The global operating environment is expected to remain challenging through 2025, and into 2026, marked by ongoing geopolitical tensions, macroeconomic headwinds, and elevated uncertainty in international trade. Volatile currency movements, slowing economic growth, weakening consumer sentiment, and continual inflationary pressures will continue to persist.
At the same time, continued high cocoa bean prices remain a significant headwind for chocolate manufacturers worldwide, and we expect this will continue weighing on industry earnings. Our teams have been proactively developing initiatives to mitigate the impact of higher input costs, as well as improvement to operational efficiency across our supply chain.
Despite these near-term challenges, we remain committed to our long-term strategic priorities. With a strong foundation built on decades of cocoa and chocolate expertise, established brand equity, a culture of innovation, extensive distribution capabilities, a healthy balance sheet, and resilient cash flows, we are well-positioned to navigate the evolving business environment.
As uncertainties persist, we will continue to monitor external developments closely and take timely, well-considered actions to remain on course.