By VEN SREENIVASAN
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CEREBOS Pacific posted a marginal increase in first quarter net earnings despite foreign exchange translation losses taking a toll on its revenue and operating profit.
Net profit for the October-December 2008 period rose 2 per cent to $30.1 million, from $29.7 million thanks to continued strong growth in its Brand's franchise and its health supplements in all its markets.
This came despite a 2 per cent dip in topline sales to $223.7 million from $228.4 million.
The forex translation losses hit the topline revenue to the tune of $26.3 million, while the bottom line was hit by some $2.7 million.
The topline was significantly impacted by a more than 20 per cent year-on-year depreciation in the Australian dollar during the period.
In fact, the company's topline revenue took a $22.8 million translation loss on its Australasia business alone, which would otherwise have grown by 7 per cent during the quarter.
Revenue from Australasia totalled $74.5 million (after forex adjustments), versus $90.6 million a year earlier.
Still Australasia's operating profit would have been 13 per cent lower year-on-year excluding a $1 million translation loss due to high expenditures on promotions in the face of competitive pressures.
Thailand, Taiwan and Malaysia remained strong growth markets during the quarter, especially for the Brand's liquid products and health supplements.
Cerebos had cash and cash equivalents of some $136 million at the end of Q1.
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