A sweet journey for JB Foods
Doreen Leong | 19 Apr 2019 00:30
Singapore Stock Exchange (SGX) listed JB Foods Ltd, based in Johor, may be much smaller in size and
operations compared with its Malaysia-listed peer Guan Chong Bhd. But the cocoa ingredient producer’s fortunes are very similar to Guan Chong’s.
In fact, the owners of both companies are related. JB Foods’ CEO Tey How Keong and Guan Chong’s managing director and CEO Brandon Tay Hoe Lien are cousins. However, their shareholdings in their respective companies remain separate.
JB Foods has had its fair share of turbulence. Soon after it was listed on SGX in 2012, the company was hit by price volatility and an economic slowdown, resulting in subdued demand for cocoa ingredients, as well as oversupply issues.
To mitigate the overall financial impact and business risks, the company controlled its costs and slowed down its bean processing throughput.
“Two years, 2013/2014, were challenging for us and for many other players as well. So, after 2015,
there were not many suppliers left and the industry saw improvements. We saw good topline growth in 2017/2018,” JB Foods chief financial officer Edward Wong tells FocusM.
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