JB Foods updates on Russia and Ukraine exposure

Hands holding dried cocoa beans before they are crushed in an Ivory Coast village. Photo by Etty Fidele on UnsplashHands holding dried cocoa beans before they are crushed in an Ivory Coast village. Photo by Etty Fidele on Unsplash

JB Foods reported Wednesday the company expected Russian and Ukraine to contribute around 10 percent of the group’s revenue for 2022, down from 17 percent of 2021 revenue. 

The remaining undelivered contracts for 2022 is about 7 percent of the group’s 2022 revenue target, JB Foods said.

The sanctions against Russia, which have been imposed after the country invaded Ukraine in late February, are not expected to directly impact the company’s business, JB Foods said in a filing to SGX. See updates on Russia’s invasion of Ukraine.

“The current raft of sanctions is aimed primarily at restricting the ability of the Russian government to transact internationally, as well as limiting market access for certain sensitive sectors, such as technology and Energy,” JB Foods said. “The essential industries such as food & beverages that the group operates in are not included in the restrictions, and are unlikely to face immediate demand destruction.” 

But the company added, it expects the Russia business to be hit short-term by the massive devaluation of Russian roubles and by supply-chain disruptions from the war. 

In Ukraine, the company is concerned about the safety of its agent and customers and it has temporarily halted sales-related activities amid massive damage to public infrastructure and supply-chain disruption, the filing said.

JB Foods said it its actively assessing the impact of the conflict. 

The company is a major cocoa ingredient producer, including cocoa butter, cocoa powder and cocoa mass. Its products are mainly sold under the JB Cocoa brand name.

While you’re here, we’re hoping you can help us out.

Your monthly contribution will directly fund our journalism.

You can check your existing account here and you can sign in to Shenton Wire here.

You can also contact us to request our rate card for corporate sponsorship, advertising, syndication and sponsored articles.