Food Empire 9M revenue rises 11.7% to record US$476.5 million on Russia, Central Asia growth

[SINGAPORE] Food Empire posted an 11.7 per cent rise in revenue to a record US$476.5 million for the nine months ended Sep 30, from US$426.7 million in the previous corresponding period.

This was driven mainly by its core Russia and Central Asia segments, which both logged double-digit revenue growth. All other geographical segments also had higher revenue, the mainboard-listed group said on Thursday (Nov 12).

For its third quarter ended Sep 30, revenue rose 5.8 per cent to US$161.4 million, from US$152.6 million a year earlier. This was driven by growth across its core segments and partly offset by a 5.2 per cent decline in Europe.

Food Empire said that growth moderated from the first half of the year, amid geopolitical uncertainty, logistical constraints and currency volatility. It added that it “adjusted its operating priorities” to balance sales growth and margins.

By geograhical segment, Russia, the group’s largest, saw revenue rise 16 per cent to US$155.5 million in 9M 2026. Food Empire attributed this to its “leading position” in instant coffee-mix products and ongoing investment in brand building.

Revenue from Central Asia, its fastest-growing segment, climbed 25.4 per cent to US$94.8 million in 9M 2026, on higher sales volumes in Uzbekistan, Turkmenistan and Georgia, as well as higher demand and a stronger Kazakhstan tenge against the US dollar in Kazakhstan.

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“Growth was more measured in Q3,” the group noted, “as heightened tensions in the Middle East disrupted logistics and supply chains and added to production and distribution costs.” For the quarter, Central Asia revenue came in at US$34.3 million, up 12.8 per cent year on year.

South-east Asia’s 9M 2026 revenue rose 2.9 per cent to US$117.8 million, reflecting a “focus on margins in Vietnam” and better utilisation of its non-dairy creamer plant in Malaysia.

Revenue from South Asia rose 6.6 per cent to US$58.1 million, as the group’s soluble coffee plants ran at full capacity. Europe revenue rose 1.7 per cent to US$35.9 million.

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Food Empire said it is on track for its sixth consecutive year of record revenue, as demand for its coffee products “remains solid across its core segments” despite geopolitical uncertainty, logistical disruptions and rising operating costs.

In Vietnam, it has shifted its focus to profitability after two years of heavy investment in its CafePHO brand, and expects South-east Asia revenue growth to be more measured in the near term.

In Central Asia, a new coffee-mix facility in Khorgos, Kazakhstan, which began production in the first half of 2026, is expected to ease logistical challenges and cost pressures.

The group is also expanding capacity. A spray-dried soluble coffee facility in India, due for completion by end-2027, will increase existing capacity by 60 per cent.

A new freeze-dried soluble coffee facility in Vietnam, due by 2028, will increase existing capacity by 120 per cent.

Group CEO Sudeep Nair said the group will continue to “actively balance growth with margins in an extremely volatile environment”.

Shares of Food Empire closed flat at S$1.79 on Thursday, before the announcement.