Supercoffee reported strong 1QFY10 results with net profit up 152% yoy to $15m. Core earnings accounted for 27% of our full year forecast; on track to deliver a record profit this year with core earnings expected to grow 38% yoy exluding any divestment gains.
Earnings out-performance was driven by strong top-line growth of 27% and better gross margin of 39.5% vs 31.2%. Consumer goods sales grew 22% due to higher sales in key Southeast Asian markets. Ingredient sales surged 111% due to strong demand for its soluble coffee powder and non-dairy creamer. The gross margin improvement was due to better cost control and production efficiency.
Mgmt remains confident of maintaining profitability on the back of growing demand for consumer goods in its key Southeast Asian markets and buoyant ingredient sales in China and Taiwan.
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