Wednesday 13 June 2018

COCOLAND Annual Report 2017


Today let's have a look at COCOLAND annual report 2017.

 First,
the revenues for the past 5 years:

Basically the revenue improved for every year except 2017...

 The problems during year 2017:
1) High raw material costs
2) Volatile USD/MYR foreign exchange rates
3) Beverage price war

The lower revenue was dragged down by beverage and hard candies,
and mainly supported by gummies.

 As for profit:

Up and down.........

 The lower gross profit was caused by higher material costs and production labour costs.

Also,
the strenghtening of RM against USD caused foreign exchange losses.

 The product exhibition and promotion expenses increased for 33.5% comparing with year 2016,
caused the profit to drop a lot.

 Anyway,
the ROE still looked quite nice though:

Dividends:

I supposed the growth of dividends should be satisfying for the shareholders~

 Currently,
Malaysia still remained as the main market by contributing 44.4% of total revenue.

For overseas market,
there were revenue growth at South Korea, Vietnam and China.
However,
the laggards were Saudi Arabia and Hong Kong.

 Also,
the company expects to expand its footprints in Indonesia:

The company also started to sell through online and launched a premium product "A' Fresh gummy"...

 The website:
http://www.cocoalandretail.com/

Premium price for premium products~

A new gummy line expects to commence at second half of 2018.

 The company also projected some capitals for acquisition of plant and machinery and factory equipment:

Oh?
M&A opportunities!?

Seems like the growth at year 2018 will be largely depending on gummy products~

 Guess the future of COCOLAND will be on Gummy products already,
even though the Gummy products able to continue to grow,
but Beverage and Hard candies still a downside for the company.......

 There is something good,
there is something bad too.

 The 1st quarter financial result of COCOLAND came out not long after releasing the annual report:

 OKAY result only...

 The management commented on rising labour cost and foreign exchange losses,
some commonly seen reasons of profit dropping,
so I will not write the details here.

 If you are interested to know,
please go to read the 1st quarter report.

 Investment is about doing own thinking, making own decision.

 Thanks for reading.

I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.


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