Petra suffers from slower demand in Indonesia

3.5% revenue growth disappointed analyst.

According to OCBC Investment Research, smaller cocoa losses aside, Petra's 2Q13’s revenue growth of 3.5% YoY to US$125.6m was a tad disappointing.

Its core market of Indonesia only mustered a minimal 0.1% YoY increase in sales to US$91.4m although the regional markets (including the Philippines) helped to pick up the slack with a decent 13.9% increase to US$34.3m.

Here's more:

As previously communicated, we are concerned over a possible slowdown in consumption demand in Petra’s key markets given the recent spate of weaker economic data and regulatory changes (e.g. fuel hikes).

Therefore, we view the smaller top-line growth as a possible confirmation of this concern, and as a trend that could extend into 2H13. 

Petra Foods’ 2Q13 results saw a smallerthan-expected cocoa ingredients loss. Operating profit improved 8.8% YoY to US$21.5m, and with losses from its discontinued cocoa ingredients business only half of what we expected at only US$10.0m, PATMI came in at US$4.8m.

Management declared an improved interim dividend of 2.36 US cents (vs. 2.11 US cents in 2Q12).