Published: Monday September 3, 2012 MYT 11:32:00 AM
HB Global slumps after Q2 earnings fall 78%
At 11.17am, shares of the ready-to-serve food manufacturer was down 15 sen to 40 sen. There were 7.56 million shares done at prices ranging from 39 sen to 53 sen.
The FBM KLCI rose 7.55 points to 1,653.66. Turnover was 587.20 million shares valued at RM466.81mil. There were 283 gainers, 256 losers and 273 counters unchanged.
Last Thursday, HB Global reported that its Q2 earnings fell 78.4% to RM6.67mil from RM30.92mil a year ago while its revenue declined 44.8% to RM56.69mil from RM102.72mil.
"The decrease is mainly due to food manufacturers worldwide (such as from Brazil and Thailand) had shifted their target market from Europe after the eurozone experienced economic difficulty and move into the Japanese market. Competition in the Japanese food market had then stiffened and eroded our group's revenue and profits," it said.
It added t sales of ready-to-serve products frozen vegetables products were impacted by the competition.