JB Foods Limited: Interim Financial Review for 1H2026

JB Foods Limited, a Singapore-listed manufacturer and trader of cocoa ingredients, has released its unaudited interim financial statements for the six months ended 30 September 2025 (1H2026). The results reflect a dramatic turnaround from the previous period, driven by higher cocoa prices, improved operational performance, and substantial hedging gains. Below, we break down the key financial metrics, historical trends, dividends, and other notable events to provide investors with a clear understanding of the company’s performance and outlook.

Key Financial Metrics and Comparative Table

^† 0.20 cent interim + 2.80 cents special dividend proposed for 1H2026.

Historical Performance Trends

The reporting period saw a remarkable recovery for JB Foods Limited, with revenue surging 57.7% year-on-year and a swing from a net loss in the prior year (1H2025: -USD52 million) to a net profit of USD59.4 million. This turnaround is primarily attributed to:

• Significantly higher average selling prices and improved operating margins.
• Fair value mark-to-market gains of USD42.3 million from hedging activities.
• Operational improvements and better cost management.

Gross profit improved to USD102.5 million from a negative gross profit in the prior year, further highlighting the magnitude of the recovery.

Dividends

The Board has announced an interim cash dividend of 0.20 Singapore cents per share and a special cash dividend of 2.80 Singapore cents per share, totaling 3.00 Singapore cents for the period. This compares very favorably to the prior year interim dividend of only 0.20 Singapore cents and the final dividend of 2.05 Singapore cents, reflecting the strong financial performance and robust cash generation in 1H2026.

• Date payable: On or about 5 December 2025
• Record date: 21 November 2025

Exceptional Earnings and Expenses

The surge in profitability was amplified by:

• Fair value gains from derivatives and hedging activities.
• Other income from forward foreign exchange contracts (GBP and EUR), as part of the Group’s hedging strategy.

These factors contributed to a significant difference between this period and the prior period, which was loss-making.

Share Capital and Dilution

During the period, JB Foods completed a rights issue, issuing 43,314,280 new shares (1 Rights Share for every 7 existing shares) at S\$0.45 per share, raising approximately USD15 million. The total issued shares increased from 303.2 million to 346.5 million.

Balance Sheet and Cash Flow Highlights

• Current assets decreased by 25.5% to USD687.9 million, mainly due to lower inventories and trade receivables, reflecting faster inventory turnover and cash collection.
• Current liabilities decreased by 40.4% to USD453.0 million, mainly due to a reduction in trade payables.
• Net assets increased by 35.4% to USD269.6 million, driven by the strong profit and new equity raised.
• Net cash used in operating activities was USD110.6 million, mainly due to large payments of prior period payables and derivative settlements, offset by inventory and receivable reductions.
• Net cash generated from financing activities was USD119.2 million, mainly from new borrowings and rights issue proceeds.

Related Party Transactions

The company paid interest on loans amounting to SGD40.0 million provided by Tee Yih Jia Food Manufacturing Pte Ltd (controlling shareholder), with related interest paid totaling SGD675,000 during the period.

Macroeconomic and Industry Trends

• Cocoa bean prices remain volatile but have eased from 2024 highs.
• Global demand is stabilizing as manufacturers adjust to new price levels.
• The EU Deforestation Regulation, macroeconomic conditions, and US tariff measures may introduce further uncertainties and compliance costs.

The company emphasizes continued vigilance and flexibility in sourcing, pricing, and hedging to respond to evolving market conditions.

Forecasted Events and Outlook

Management highlights ongoing market volatility and regulatory changes as key watchpoints for the next 12 months. No explicit quantitative forecast was given, but the tone is one of cautious optimism, citing stabilization in demand and their readiness to adapt to supply chain and regulatory changes.

Chairman’s Statement

No separate Chairman’s Statement was presented in the report. The commentary from management is overall positive, expressing confidence in the company’s ability to respond to market challenges while acknowledging potential risks from regulatory and macroeconomic changes.

Conclusion and Investment Recommendation

Overall, JB Foods Limited has delivered a striking recovery in 1H2026, marked by robust revenue growth, a decisive swing to profitability, and generous dividends. The balance sheet has strengthened, and the company has successfully navigated previous headwinds through operational discipline and effective hedging.

For Current Shareholders: Investors holding JB Foods shares should consider maintaining their position. The strong rebound in earnings, prudent risk management, and increased dividend payout provide a compelling case for continued confidence. However, ongoing volatility in cocoa prices and regulatory uncertainties warrant close monitoring.

For Prospective Investors: Those not currently holding the stock may consider initiating a position, given the company’s demonstrated turnaround, attractive dividend yield, and improved operational metrics. Nevertheless, entry should be timed with an awareness of sector volatility and potential regulatory impacts on margins.

Disclaimer: The above analysis is based solely on information disclosed in the company’s interim financial report as of 30 September 2025. It does not constitute investment advice. All investment decisions should be made based on individual risk profiles and in consultation with a licensed financial adviser.

View JB Foods Historical chart here