Currency war vs greenback distorts Petra Foods' impressive profit growth

The 10.6% drop was just superficial.

While everyone else was busy talking to analysts about company profit results, Petra Foods was beside itself, trying to convince investors and analysts that it actually did pretty impressive last quarter.

According to OCBC, Petra Foods’ 2Q14 reported results for continuing operations continued to be distorted by the weaker regional currencies against USD on a YoY basis.

Here's more from OCBC:

Reported 2Q14 revenue increased 5.3% YoY to US$131.8m while reported PATMI declined 10.6% to US$13.2m. However, in constant currency terms, growth is strong as 2Q14 revenue and PATMI increased by 20.9% and 10.4% respectively.

The revenue growth is led by key emerging markets Indonesia (24.8% increase) and Philippines (>40% increase). On a half-year basis, reported 1H14 revenue increased 1.0% YoY to US$254.6m, forming 45.5% of our FY14 forecast.

Reported PATMI declined 6.2% to US$27.1m, making up only 41.3% of our forecast due to lower-than-expected EBIT margin. An interim cash dividend of 2.73 S-cents was declared.

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