{
  "id": 9317729,
  "title": "JB Cocoa outlook turns positive on stronger earnings",
  "url": "https://urgent.news/2026/09/23/jb-cocoa-outlook-turns-positive-on-stronger-earnings",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-23T10:23:12.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/09/1539445/jb-cocoa-outlook-turns-positive-stronger-earnings"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: MARC Ratings has upgraded the outlook on JB Cocoa Sdn Bhd's RM500 million sukuk from stable to positive, maintaining the rating at A+IS. JB Cocoa is a key subsidiary of JB Foods Ltd, which guaranteed the sukuk. This positive outlook is due to MARC's confidence that JB Cocoa will maintain its earnings growth while navigating cocoa price fluctuations that affect working capital and liquidity. The company demonstrated resilience during a period of high and volatile cocoa prices, thanks to strong risk management, cost-plus pricing, and hedging strategies. In FY26, JB Cocoa's operating profit margin surged to 9.52% from 4.03% in the prior 15-month period, while leverage remained well-managed despite increased borrowing for cocoa inventory. The debt-to-equity ratio improved to 0.96 times from 0.99 times. Although cash flow from operations turned negative due to working capital fluctuations, including cocoa bean payments, JB Cocoa's liquidity remained robust with RM195.7 million in cash reserves, significant bank facilities, and unused capacity under the sukuk. JB Cocoa's grinding volumes fell to 154,090 tonnes in FY26 from 164,535 tonnes in FY25, indicating reduced global cocoa grinding activity as buyers opted for smaller, more frequent orders amid increasing prices. The upcoming Ivory Coast facility of JB Foods, adding 60,000 tonnes of capacity and raising total grinding capacity to 270,000 tonnes, is expected to enhance sourcing and geographic diversification, as well as improve access to European and US markets.",
  "summary": "KUALA LUMPUR: MARC Ratings has revised the outlook on JB Cocoa Sdn Bhd’s RM500 million sukuk to positive from stable, while affirming the rating at A+IS.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}