CEREBOS TO CONTINUE STRATEGIC INVESTMENTS IN FY2012 DESPITE LOWER Q1 PROFIT

03 May 2012

Highlights

Q1 Sales up 4% at $241.2 m
Q1 Operating Profit down 14% at $36.3 m
Q1 Net Profit down 13% at $25.3 m
Return on Shareholders’ Fund at 21.7%

[ Singapore – 3rd May 2012 ] Cerebos Pacific Limited today reported a first quarter FY2012 sales revenue of S$241.2 million and a Group operating profit of S$36.3 million with a net profit of S$25.3 million.

For its Health Supplement Division, sales rose 4% generated from strong sales performances in Thailand, Hong Kong and Malaysia. In general the timing of the Chinese New Year period being earlier than last year meant that the festive sales uplift was taken into the previous December 2011 sales. Its Taiwan (ROC) business continues on the road to recovery from the nationwide food contamination scare which still affects consumer sentiment. In China (PRC), the business was impacted by its strategy of shifting to more profitable channels, which has still some way to progress, as well as by the launching of new products.

Overall, the BRAND’S® Essence of Chicken range is growing well in many markets and has been gaining wider consumer attention as a result of ongoing publicity for a new scientific discovery – the unique bioactive peptide ProBeptigen® which works to positively impact performance in the brain. It is now understood that ProBeptigen® in BRAND’S® Essence of Chicken holds the key to aiding memory, mental sharpness, concentration, and learning motivation.

For its Food & Coffee Division (FCD) sales rose 5% mainly as a result of better coffee sales in New Zealand. However the competitive retail landscape in Australia continues to present a challenge and tempered the division’s performance.

The FCD strategy to deliver more exciting new product formats in the food category coupled with the active exploration to extend coffee into Asian markets over the next few years will strengthen its position for continued growth.

Looking ahead President & Group CEO Mr Eiji Koike expressed his determination to invest further in order to make Cerebos more sustainable: “The Group will continue to invest in its strategic priorities namely customer relationship focusing on digital initiatives, research and new product development as well as supply chain management, in line with its vision to increase stakeholder value.”
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Attached : 
Cerebos Pacific Limited 1st Quarter 2012 Financial Statement Announcement.