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Food Empire's Q2 profit surges 76%

HIGHER revenue and lower advertising and promotion expenses gave a fillip to Food Empire's results for its second quarter.

Its net profit for the three months ended June 30 rocketed 75.9 per cent to US$3.2 million from the previous year, the group said in a Singapore Exchange filing on Sunday morning.

Revenue grew 17.6 per cent to US$62.8 million from the previous year. The increase in revenue was due partly to higher sales contribution from the group's non-dairy creamer plant in Malaysia and instant coffee plant in India, it said.

Earnings per share expanded to 0.61 US cent from 0.34 US cent in the previous year.

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Food Empire said it expects the economies of key markets such as Russia, Ukraine, Kazakhstan and central Asian countries to stabilise as their currencies have improved.

"The group continues to focus on expanding into new geographies outside its core markets to provide a more balanced portfolio," it said. "Building on the group's successful market diversification efforts in Indochina, the group plans to replicate its proven business model in other regions in Asia."

It also plans to tap strategic mergers and acquisitions to expand further upstream and downstream, and to enter new markets, it added.