Food Empire H2 net profit falls 9.6%, but full-year revenue at new high of US$425.7 million

FOOD and beverage manufacturer Food Empire Holdings posted a 9.6 per cent decline in net profit to US$29.8 million for its second financial half ended Dec 31, 2023, from US$33 million in the corresponding period the year before.

This was despite an 2.9 per cent increase in revenue to US$227.5 million over the same period, from US$221 million the year before.

The results translate to an earnings per share of 5.67 US cents, against earnings per share of 6.19 US cents in the year-ago period.

In its bourse filing on Tuesday (Feb 27), the group said the higher revenue was mainly contributed by its Kazakhstan and Commonwealth of Independent States markets, as well as its South-east Asia and South Asia segments. 

But the gains there were partly offset by the group’s Russia segment, from the depreciation of the Russian rouble against the US dollar, the mainboard-listed company noted.

In a statement with the release of its latest financials, Food Empire said that its full-year revenue hit a record US$425.7 million. It said this showed strong consumer demand from the group’s core markets.

The group said demand for its products is expected to remain strong across multiple geographies. However, the prices of some ingredients – for example, Robusta coffee, used in its branded coffee-mix business – are at a historical high.

Full-year net profit was down 6 per cent, at US$56.5 million.

Earnings per share for the year thus came in at 10.75 US cents, a drop from earnings per share of 11.28 US cents in the year-ago period.

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Nevertheless, the board proposed a first and final dividend of 5 Singapore cents per ordinary share, and a special dividend of 5 Singapore cents per ordinary share. 

Once approved at the company’s Apr 19 annual general meeting, the first and final dividend and special dividend will be paid out on May 17, the group said.

Shares of Food Empire closed up 0.7 per cent at S$1.45 on Tuesday, before the release of the results.