CEREBOS POSTS 40 percent RISE IN Q2 FY2012 NET PROFIT

01 Aug 2012

Q2 Sales +2% at S$234.6 million
Operating Profit +37% at S$35.7 million
Net Profit +40% at S$22.8 million

Highlights First 6 Months FY2012

First 6 months Sales +3% at S$475.8 million
Operating Profit +5% at S$71.9 million
Net Profit + 6% at S$48.0 million
Return on Shareholders’ Funds at 23.7%

[ Singapore – 1st August 2012] Cerebos Pacific Limited today announced a 2nd Quarter net profit of S$22.8 million. This is a 40% increase compared to S$16.2 million for the previous corresponding quarter. Sales at S$234.6 million was 2% higher than the S$230.8 million recorded in the previous corresponding quarter mainly attributable to the positive sales from the Health Supplement Division.

The Group's Operating Profit ("OP") for the 2nd quarter improved by 37% against the previous corresponding quarter. The improvement was driven by the 2% higher sales, lower raw material process, lower A&P expenses as well as the recovery of insurance claim for the Taiwan product recall which occurred in the previous financial year.

President & Group CEO, Mr Eiji Koike said: “Overall our established brands in health supplements, food and coffee have been able to retain their category leadership. In particular BRAND’S® Essence of Chicken, our flagship product, was able to engage consumers through ongoing publicity for the unique bioactive peptide ProBeptigen® which works to positively impact performance in the brain. ProBeptigen® in BRAND’S® Essence of Chicken holds the key to aiding memory, mental sharpness, concentration, and learning motivation.”

For the first six months ended 30 June 2012, Cerebos Group sales were 3% higher at S$475.8 million (HY 2011 : S$461.7 million) as a result of sales growth in both business divisions. For the Food & Coffee Division, sales for the first 6-month period improved 2%, largely due to higher coffee sales. The Health Supplement Division sales grew by 4%, mainly attributable to strong sales growth in Thailand.

The Group's OP for the first 6-month period improved 5% to compared to the previous corresponding period and would have increased by 7% if the translation loss of $1.2M was excluded. OP for the Food & Coffee Division for the first 6-month period was 16% lower largely due to higher promotional expenses and higher operating costs in the first quarter. OP for the Health Supplement Division was 12% higher mainly due to higher sales contributions and recovery of an insurance claim.

On the outlook for the rest of the year, Mr Koike reiterated the Group’s stated strategy to continue investing for the future: “Despite the uncertainty in the economy, the Group will continue to invest in its strategic initiatives, namely customer relationship through digital initiatives, research and new product development and supply chain management, in line with its objective to increase shareholder value.”

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Attached :
Cerebos Pacific Limited 2nd Quarter and First Six Months Financial Statement Announcement
for FY 2012.