Financial Briefs: Tootsie Roll, Petra Foods and Meiji

Increased interest in cocoa polyphenols helped Japanese confectioner Meiji grows sales in its latest financial results, while Petra Food and Tootsie Roll also reported sales growth in Q2.

Meiji: Interest in cocoa polyphenols

Japanese firm Meiji grew sales in the first quarter of the Japanese financial year.

Q1 2015 revenues in its confectionery segment grew 7.8% to JPY 46.1bn ($444m), while the company’s net profit for the division

“Net sales of chocolate increased year on year. Increased consumer interest in cacao polyphenol[s] helped drive significant growth of our bitter chocolate products such as Chocolate Koka series,” said the firm.

It added that gummie sales were also up due to the redesigned packaging and launch of new flavors for the Kaju Gummy brand. However, chewing gum sales continued to decline, following the overall market trend.

Petra Foods grows in the Philippines

Singapore-based Petra Foods posted its Q2 results on 13 August. The firm reported value sales of $131.8m, up 5.3% from last year. However, net profit for the quarter was down 10.4% to $13.2m.

Indonesia remained the firm’s biggest sales contributor, accounting for 73% of the group’s sales, but the firm registered its strongest growth in the Philippines. The company is also active in Malaysia and Singapore.

“Petra Foods’ strong showing in the Philippines reflected the success of its investment to enhance its route-to-market capabilities and strengthen its portfolio of Own Brands through aggressive new product launches with extensions into other categories including chocolate spreads,” said the firm. The company’s CEO John Chuang added that Petra Foods would invest to improve its manufacturing capacity to capitalize on the growing South-East Asian chocolate confectionery market.

“We are also constantly exploring possibilities to enter new markets to expand our regional footprint and to extend into new categories,” he said.

Tootsie uptick

Elsewhere, US firm Tootsie Roll industries reported growth in Q2 sales and net profits. The firm posted revenues of $104m, up 2%, while net profits were up 8% to $9m.

“Second quarter and first half net earnings benefited from a more favorable ingredient costs as well as plant efficiencies…,” said Tootsie Roll chairman Melvin J. Gordon.