Food Empire returns to the black in H1 with US$35.4 million net profit

[SINGAPORE] Food Empire returned to the black for the first half-year with a net profit of US$35.4 million, driven by revenue growth across all six of the group’s geographical segments.

The mainboard-listed instant beverage maker posted a net loss of US$1.5 million in the corresponding year-ago period, as its results were dragged down by a one-off, non-cash fair-value loss in its redeemable exchange notes.

Excluding that one-off fair-value loss, normalised net profit rose 12.2 per cent to US$35.3 million in H1 ended Jun 30, 2026, from US$31.5 million in the year-ago period, Food Empire said on Wednesday (Aug 12).

Revenue for the half-year grew 15 per cent to US$315.1 million, from US$274.1 million the year before.

Earnings per share stood at US$0.0536 for H1, compared with a loss per share of US$0.0023 previously, after adjusting for the one-for-five bonus issue completed on Jun 9, 2026.

The board declared an interim dividend of S$0.04 per share, tax-exempt under the one-tier system, up from S$0.03 in the previous corresponding period. The dividend will be paid on Sep 10.

Segment performance

Revenue from Russia, the group’s largest market segment, rose 24.6 per cent to US$103.2 million in H1 FY2026 from US$82.8 million in H1 FY2025. This was due mainly to higher sales volumes, coupled with a stronger Russian rouble.

The Central Asia segment recorded the sharpest increase, with revenue up 33.6 per cent at US$60.5 million from US$45.3 million previously. The improvement was driven by greater sales volumes across the Kazakhstan, Uzbekistan and Turkmenistan markets.

Revenue from South-east Asia climbed 2.4 per cent to US$79.3 million, with Vietnam remaining the segment’s largest market, contributing over 60 per cent of total revenue.

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The South Asia segment grew 4.4 per cent to US$38.6 million on stronger demand for freeze-dried and spray-dried soluble coffee.

Meanwhile, the Europe segment expanded 5.5 per cent to US$25 million on higher sales volumes and price gains in the Ukraine market.

With H1 revenue already surpassing that of the previous corresponding period, Food Empire said it expects to achieve a strong full-year performance, barring unforeseen circumstances.

Its outlook is underpinned by resilient consumer demand for its instant beverage brands and a robust pipeline of capacity expansion projects.

The group’s new coffee-mix manufacturing facility in Khorgos, Kazakhstan, is now operational and expected to contribute from the second half of FY2026.

This would boost the group’s ability to serve the Central Asia market more efficiently amid logistical challenges arising from the Middle East conflict.

Food Empire said it remains watchful of potential indirect cost pass-through from elevated freight, energy and packaging costs linked to conflicts in Europe and the Middle East, though it does not expect any direct material impact as these regions are not core markets.

The group’s capacity growth pipeline includes the expansion of its spray-dried soluble coffee facility in India, which is on track for completion by end-2027, and a new freeze-dried soluble coffee facility in Vietnam, expected to be completed by 2028.

Shares of Food Empire closed 0.4 per cent or S$0.01 higher at S$2.51 on Wednesday, before the results were released.