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Food Empire
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Joelton
Supreme |
22-Mar-2025 14:14
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Food Empire receives US$10 mil loan to build new manufacturing facility in Kazakhstan
Food Empire has secured a US$10 million ($13.35 million) loan from the European Bank for Reconstruction and Development (EBRD) for the construction of its new coffee-mix manufacturing facility in Kazakhstan.
The facility is located within the Khorgos Special Economic Zone (SEZ) in Kazakhstan, and it is Food Empire&rsquo s first manufacturing facility in the country.
The facility will produce the group&rsquo s portfolio of instant beverage products including its flagship MacCoffee brand of instant coffee-mix. Food Empire expects to export up to 50% of the products manufactured at the new facility to Central Asia and the Caucasus.
Meanwhile, the EBRB said that it expects the new facility to create jobs and set a new benchmark for the food-processing sector in Kazakhstan and Central Asia in terms of technology and hygiene standards.
The EBRB has invested more than &euro 11 billion in 335 projects in Kazakhstan, with most of the funds supporting private entrepreneurship.
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SmallSmall
Supreme |
13-Mar-2025 13:22
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$1.25 now
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Lightyear
Veteran |
07-Mar-2025 10:04
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Up from 0.98 to 1.21 in a week, wow | ||
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Joelton
Supreme |
26-Feb-2025 14:40
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Food Empire H2 profit down 3.2% at US$28.9 million
This is despite revenue growing 10.4% to US$251.1 million for the period
FOOD Empire&rsquo s net profit fell 3.2 per cent to US$28.9 million for the second half ended Dec 31, 2024, from US$29.8 million in the same period the year before.
Meanwhile, its revenue rose 10.4 per cent to US$251.1 million from US$227.5 million, the food and beverage company said on Tuesday (Feb 25).
The group proposed a dividend per share of S$0.08, comprising a final dividend of S$0.06 and a special dividend of S$0.02.
Excluding special dividends, this is the third consecutive year of dividend increases, Food Empire noted.
Earnings per share for H2 stood at US$0.0549, down from US$0.0567.
For the full year, the company reported a net profit of US$52.5 million, down 7 per cent from US$56.5 million. Revenue came in at US$476.3 million, up 11.9 per cent from US$425.7 million.
FY2024 marks Food Empire&rsquo s fourth consecutive year of revenue growth amid geopolitical challenges, group chief executive officer Sudeep Nair said.
The group also cited its diversification strategy and focus on the fast-growing Asia region. Its revenue was boosted by double-digit growth in its South-east Asia, South Asia, as well as Ukraine, Kazakhstan and Commonwealth of Independent States segments.
However, the gain was partially offset by a slight dip in its Russia segment, due to the depreciation of the Russian ruble against the US dollar.
As part of its regional expansion strategy, the company has invested in new production facilities in Asia, including a coffee-mix production facility in Kazakhstan that will be constructed by the end of 2025.
This will be Food Empire&rsquo s first such facility in Central Asia, and it will enable the group to serve markets in that region more efficiently, it said.
While it is &ldquo cautiously optimistic&rdquo about sustained business growth, it is also mindful of macroeconomic factors such as geopolitical challenges and heightened trade tensions that may cause currency volatility, it said.
It also noted that climate change has driven up the cost of its main raw material, coffee beans.
&ldquo The group remains vigilant of any potential impact that these events may have on its business, and will continue to conduct periodic reviews and manage its business strategies to mitigate these challenges,&rdquo it added.
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hschsc
Master |
25-Feb-2025 20:22
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Food Empire marks 4th consecutive year of topline growth FY2024 revenue hits new record of US$476.3 million The South-East Asia segment has become the Group&rsquo s second largest revenue contributor The Board proposes a total dividend of 8.0 Singapore cents per ordinary share comprising a first and final dividend of 6.0 Singapore cents and special dividend of 2.0 Singapore cents This is the third consecutive year of increase in dividends (excluding special dividends) Food Empire remains optmistc about its growth prospects with ongoing product innovaton and brand building efforts across markets, and capacity expansion projects in the pipeline |
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Secret_Squirrel
Elite |
24-Feb-2025 13:15
Yells: "Make Abundant Gains Again (M.A.G.A)" |
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The full year financial report should be out soon. Last year full year report was out on 27 Feb 2024. |
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Secret_Squirrel
Elite |
24-Feb-2025 11:16
Yells: "Make Abundant Gains Again (M.A.G.A)" |
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Ruble Hits 6-Month High Amid U.S.-Russia Rapprochement - The Moscow Times The ruble has gained about 14% since U.S. President Donald Trump returned to the White House in January, reversing losses from late 2024. |
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hschsc
Master |
13-Feb-2025 09:48
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Trump and Putin set to meet in Saudi Arabia on Ukraine. This should be good news for Food Empire. |
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Joelton
Supreme |
23-Jan-2025 10:09
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&lsquo Hold&rsquo onto Food Empire as it sets the stage for diversification
UOB Kay Hian is keeping its &ldquo hold&rdquo recommendation on Food Empire Holdings but with a higher target price of $1.10 from $1.00 previously.
In its Jan 20 report, analysts John Cheong and Heidi Mo are upbeat on the group&rsquo s upcoming 2HFY2024 ended December 2024 earnings release on Feb 26 after trading hours. &ldquo We are expecting 2HFY2024 net profit at US$22 million &ndash US$23 million (vs 1HFY2024: US$24 million, 2HFY2023: US$30 million). This will bring full-year net profit to US$46 million &ndash US$47 million.&rdquo
While revenue is expected to see growth on strong demand and increased marketing efforts, particularly from the Southeast Asia segment, the analysts believe that margins are likely to take a hit from currency devaluation and rising coffee prices.
Meanwhile, Food Empire has invested US$80 million into a new freeze-dried coffee manufacturing facility in Binh Dinh, Vietnam, located near coffee-growing regions and funded by both borrowings and internal resources.
This strategically positions the company to leverage low production costs, access quality coffee beans and tap into the growing Southeast Asian coffee market. The group&rsquo s second coffee facility will commence construction in 1Q2025, and is expected to be completed by early-2028.
&ldquo We think that this vertical expansion will grow its ingredients business and strengthen the company&rsquo s presence in the rapidly growing Southeast Asian market, while effectively diversifying away from Russia,&rdquo say the analysts.
In May 2024, the group had also revealed plans to establish its first coffee-mix production facility in Kazakhstan, with an expected completion by end-2025. Once operational, the facility will produce coffee-mix sachets under the group&rsquo s various brands, including the flagship MacCoffee brand, which is sold in over 60 countries.
In Aug 2024, it also formed a strategic partnership with Ikhlas Capital to support the growth of its business segments in Southeast Asia and South Asia. Both the Southeast Asia and Ukraine, Kazakhstan and CIS segments marked strong double-digit y-o-y revenue growth, and the analysts think that Food Empire is effectively focusing on these markets to expand further.
While things look rosy on the growth front, near-term gross margins are expected to remain subdued.
Coffee prices have rallied to record highs, underpinned by reduced output due to poor weather in Brazil and Vietnam. Supply chain disruptions like the Red Sea crisis and the EU Deforestation Regulation (EUDR) have also led to price increases in 2024. Moving into 2025, as the EUDR has been postponed, demand is expected to subside while supply may improve on higher rainfall.
The analysts also see potential downside to currency translation amid exchange rate volatility, especially from Russia, Ukraine and Vietnam, as the currencies depreciate against the USD.
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SmallSmall
Supreme |
20-Jan-2025 09:20
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Finally beginning to come alive. Drink more coffee please. | ||
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Joelton
Supreme |
18-Jan-2025 13:25
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CGSI ups Food Empire&rsquo s TP to $1.53 with Vietnam &lsquo likely to shine&rsquo in FY2024 results
CGS International analyst William Tng has kept his &ldquo add&rdquo call on Food Empire with a higher target price estimate of $1.53 from $1.43 previously. Tng&rsquo s new target price comes days after he resumed coverage on the counter with a lowered target price of $1.43.
In his Jan 16 report, Tng says he attended the official opening of Food Empire&rsquo s new office at Asia Green and discusses the company&rsquo s upcoming FY2024 ended Dec 31, 2024. The analyst believes the company&rsquo s FY2024 revenue may grow by 5.8% y-o-y to US$450.5 million ($616.5 million) although its net profit for the year may decline by 18.5% y-o-y to US$46.1 million due to foreign exchange (forex) impact, higher coffee prices and an increase in spending in Vietnam.
To this end, Tng believes Vietnam is &ldquo likely to shine&rdquo in Food Empire&rsquo s FY2024 results with the company identifying the Southeast Asian nation as a key growth market.
&ldquo We expect Food Empire to provide further updates on its plan for Vietnam when FY2024 results are released. We note that for 9MFY2024, Southeast Asia/South Asia were the fastest growing segments for Food Empire, with revenue growing 30.6% y-o-y/28.3% y-o-y, respectively, amid strong growth in Vietnam,&rdquo he writes.
As such, the analyst is expecting to see higher revenue from Food Empire&rsquo s Southeast Asia market in FY2024, which confirms the company&rsquo s success in reducing its dependency on its biggest market, Russia.
With Food Empire&rsquo s intention to grow its food ingredients business and operations in Vietnam, Tng expects the company to declare an ordinary dividend per share (DPS) of 5 cents as his base case scenario, or 5.34 cents otherwise. The analyst, however, does not expect any special dividend as he thinks the company intends to conserve cash for growth.
Tng&rsquo s higher target price comes after rolling over his valuation for FY2026 based on an unchanged P/E multiple of 11.2 times and 1 standard deviation (s.d.) over the company&rsquo s five-year mean from FY2019 to FY2023.
Food Empire is expected to release its FY2024 results on Feb 26.
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SmallSmall
Supreme |
13-Jan-2025 09:56
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CGSI resumes coverage of Food Empire with lower TP of $1.43Felicia TanFri, Jan 10, 2025 &bull 12:16 PM GMT+08 &bull &bull 2 min read
Despite his &ldquo add&rdquo call, Tng has lowered his target price to $1.43 from $1.73 previously. Photo: Albert Chua/ The Edge Singapore
CGS International analyst William Tng has resumed his coverage of Food Empire Holdings with an &ldquo add&rdquo call. Tng&rsquo s last report on the counter was in May 2024. In May 2024, Food Empire announced its plans to invest US$30 million ($41.1 million) to build a new coffee-mix production facility in Kazakhstan. The plant will occupy half of a 10-hectare plot, leaving room for future expansion. The plant is targeted to be ready for production by the end of 2025, Tng notes. Food Empire also announced, in September 2024, that it will invest US$80 million in Vietnam&rsquo s Binh Dinh province, to construct its second freeze-dried soluble coffee manufacturing facilit On Nov 1, 2024, the company completed its strategic partnership with private equity fund manager Ikhlas Capital to expand its businesses in Southeast Asia and South Asia. Food Empire Holdings issued US$40 million worth of five-year redeemable exchangeable notes (REN) at 5.5% annual interest. The REN can be converted into FEH shares at $1.09 apiece after Nov 1, 2026. In his Jan 6 report, the analyst says he continues to like the counter for its potential to grow its operations in Vietnam into a new major contributor to its revenue. He also likes the company for its potential to grow its food ingredients business. Referring to Food Empire&rsquo s results for the 9MFY2024 ended Sept 30, 2024, Tng notes that Southeast Asia and South Asia were the company&rsquo s fastest growing segments at 30.6% y-o-y and 28.3% y-o-y respectively. He adds that Southeast Asia&rsquo s revenue, which reached US$94.8 million in 9MFY2024, is likely to exceed Russia&rsquo s contribution to the company&rsquo s total revenue over FY2025 to FY2026. Despite his &ldquo add&rdquo call, Tng has lowered his target price to $1.43 from $1.73 previously. The analyst has lowered his earnings per share (EPS) forecasts by 4.67%, 17.24% and 16.90% for FY2024, FY2025 and FY2026 as he raises his operating expense assumptions with Food Empire increasing its marketing spend in its growing Vietnam market. The lowered EPS forecasts also factors in US$2.2 million in additional interest expenses from the REN, says Tng. His valuation basis remains unchanged at 11.2 times FY2025 P/E or 1 standard deviation (s.d.) above its five-year mean from FY2019 to FY2023. |
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Joelton
Supreme |
12-Nov-2024 10:04
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Food Empire reports 11.4% y-o-y growth in 3QFY2024 group revenue at US$118.9 mil
Food Empire has reported a revenue of US$118.9 million for the 3QFY2024 ended September, up 11.4% y-o-y from the same period last year.
For the 9MFY2024, the group&rsquo s revenue saw a 12.8% y-o-y increase to US$344.3 million ($158.2 million).
The top line growth was mainly driven by revenue growth in its South-East Asia, South Asia and Ukraine, Kazakhstan and CIS segments, which saw a y-o-y increase of 23.2%, 16.3% and 10.3%, respectively.
According to the group, the revenue increase from Food Empire&rsquo s South-East Asia segment was mainly due to Vietnam, which emerged as the group&rsquo s fastest growing market. The performance in Vietnam came on the back of the group&rsquo s marketing efforts across all channels including more brand-sponsored giveaways-with-purchase, which led to robust sales and increased brand awareness, adds Food Empire.
Meanwhile, revenue growth in the group&rsquo s South Asia segment was driven by increased sales volumes and higher pricing, which was in line with higher coffee prices.
Revenue from the group&rsquo s Ukraine, Kazakhstan and CIS segments was up in 3QFY2024 due to higher revenue from Kazakhstan following new revenue contributions from Tea House LLP, which became a subsidiary of the Food Empire in May.
Moving forward, the group says it is closely monitoring the macroeconomic environment and geopolitical events for challenges, which may potentially impact its business in the short term.
In the longer term, the group adds that it has put in place strategic growth plans in some of its fastest growing segments. Food Empire remains optimistic that these initiatives, which are supported by its continuous investments in brand-building activities, product innovation and new product launches,
The group is expected to continue to conduct periodic reviews and adjust its sales and pricing strategies to mitigate rising raw material costs.
Sudeep Nair, group CEO, says: &ldquo We believe Food Empire is well- positioned for future expansion in Asia where there is healthy economic growth, balancing some of the geopolitical challenges from our more traditional markets in Eastern Europe. Our diversification into ingredients manufacturing provides greater stability and control over the supply chain, while our investments in production capacity expansion for our own-brand products enable us to support increasing demand from key markets.&rdquo
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hschsc
Master |
11-Nov-2024 21:04
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MAINBOARD-LISTED Food Empire on Monday (Nov 11) posted an 11.4 per cent rise in revenue to US$118.9 million for its third quarter ended Sep 30, from US$106.7 million a year ago. This was mainly due to improved revenue growth across all its markets in Asia, led by South-east Asia, which had the highest revenue increase at 23.2 per cent, the instant coffee manufacturer said in a business update on Monday (Nov 11). It did not disclose net profit figures for Q3 FY2024. For the nine months ended Sep 30, Food Empire&rsquo s revenue was up 12.8 per cent at US$344.3 million, from US$305.1 million the year before. |
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trader1970
Elite |
07-Oct-2024 09:38
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EMPIRE STRIKES BACK... Watch  ....
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trader1970
Elite |
02-Oct-2024 11:13
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A safe haven stock to conside for dividends and good capital gains in times of Middle East conflict escalation.... Essential food stuffs are inelastic demand.... WATCH list....:):) | ||
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Joelton
Supreme |
18-Sep-2024 10:00
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RHB continues to like Food Empire as it expands its production in Vietnam
RHB Singapore continues to like Food Empire, as the research house maintains its &ldquo buy&rdquo call but with a new target price of $1.23, lower than $1.36 previously.
&ldquo We continue to like Food Empire for its strong balance sheet, cash generation ability, market share traction, valuation, and growth led by capacity expansion,&rdquo says analyst Alfie Yeo, who has cut FY2025 and FY2026 earnings on higher depreciation due to the construction of new plants.
The lower target price is based on 9x FY2025 P/E. This lower multiple accounts for revenue and margin headwinds including price challenges in Russia and elevated coffee prices.
The group is starting a new coffee manufacturing facility investment in Vietnam. It will be investing about US$80 million ($103.7 million) including working capital in a new freeze-dried soluble coffee manufacturing facility in Binh Dinh province, Central Vietnam.
This will be the group&rsquo s second factory and first ingredients production facility in Vietnam.
&ldquo It can tap on Vietnam as a leading producer of Robusta coffee beans for supply, to produce freeze-dried soluble coffee. The new facility will help to increase the production of freeze-dried soluble coffee, in addition to its existing manufacturing facility in India,&rdquo says Yeo.
This will help FEH to diversify and grow its ingredients business to become a key player in spray-dried and freeze-dried soluble coffee.
The facility is expected to be completed in early 2028. The group raised US$40 million of redeemable exchangeable notes from Ikhlas Capital, and Yeo believes that this will come in handy to help fund this Vietnam expansion.
This new facility is a long-term investment where production will commence only in 2028, but there is no revenue benefit before that, except for increased capex and depreciation, notes Yeo, who has imputed higher capex for FY2025 and FY2026, as well as increase depreciation expense assumptions marginally due to the construction of the new plants.
While Yeo is positive on Food Empire&rsquo s long-term growth, supported by higher production in Malaysia, Kazakhstan, and Vietnam, he remains cautious on elevated coffee prices, the interest expense on notes issued to Ikhlas Capital and its conversion price of $1.09, as well as the short-term challenges of raising product prices in Russia.
Other risks include a disruption in operations due to the Russia-Ukraine conflict, and the negative effect of a change in the value of the Russian and other CIS countries&rsquo currencies.
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Joelton
Supreme |
12-Sep-2024 08:29
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Food Empire to invest US$80 mil in new Vietnam freeze-dried soluble coffee manufacturing facility
Food Empire Holdings has announced its plans to invest US$80 million ($104.2 million) in a new freeze-dried soluble coffee manufacturing facility in Vietnam.
The facility, located in Binh Dinh province, marks the group&rsquo s second manufacturing facility for freeze-dried soluble coffee.
According to the group, the investment is part of its ongoing diversification strategy to grow its ingredients business. Under its ingredients business, the group currently operates two facilities in India that manufacture spray-dried and freeze-dried soluble coffee, as well as a non-dairy creamer manufacturing facility in Malaysia.
Construction of the new facility is set to begin in the first quarter of 2025. The facility is expected to be completed by early 2028.
The group adds that the location in Vietnam is &ldquo strategic&rdquo as the country is one of the world&rsquo s largest producers of Robusta coffee beans.
The new facility will have a larger capacity than the existing freeze-dried soluble coffee manufacturing facility in India.
The investment comes on the back of the group&rsquo s strategic focus on Asia. In May, the group announced its first coffee-mix production facility in Kazakhstan to be opened by the end of 2025.
In August 2024, it established a strategic partnership with Ikhlas Capital for the purpose of expanding the Group&rsquo s Southeast Asia and South Asia business segments.
Sudeep Nair, CEO of Food Empire, says: &ldquo Growth from our Southeast Asia segment, and in particular, Vietnam, has been the highest in recent years. We believe there is tremendous potential for even more growth and that is why we are putting focus in the region.&rdquo
He adds: &ldquo The new Vietnam facility will not only enable us to continue with vertical expansion as part of our diversification strategy, but it will also open up new business opportunities within Southeast Asia.&rdquo
The investment will be funded by internal resources and bank borrowings.
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Joelton
Supreme |
08-Sep-2024 15:59
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UOBKH downgrades Food Empire to &lsquo hold&rsquo on narrowing margins
Its analysts also lower their dividend forecast to S$0.05 per share
UOB Kay Hian (UOBKH) has downgraded its call on food and beverage company Food Empire to &ldquo hold&rdquo from &ldquo buy&rdquo , and reduced its target price to S$1 from S$1.30.
This comes as the research house believes that the price hikes and price disruptions for coffee beans triggered by the Russia-Ukraine war would continue to lower the company&rsquo s margins.
Analysts John Cheong and Heidi Mo on Wednesday (Sep 4) said Food Empire will need time to stabilise prices to maintain revenue and margins, before it can raise prices in the Russian market.
They expect the company&rsquo s gross margins from 2024 to 2026 to remain muted at 29 to 30 per cent.
The analysts also shaved their dividend forecast for Food Empire to S$0.05 per share, from S$0.10 per share.
This followed the company&rsquo s first-half financials released on Aug 12, when it posted an 11.3 per cent year-on-year drop in net profit to US$23.6 million.
The decline, which was in line with UOBKH&rsquo s expectations, was a result of lower profit contributions from its Russian market.
Revenue generated from this market fell 3.6 per cent in H1 ended Jun 30, mainly due to the depreciation of the Russian rouble against the US dollar (USD), and excess stock levels.
This currency devaluation, along with high inventory levels, is expected to weigh on Food Empire&rsquo s near-term performance, because customers will take time to deplete their stockpile, said Cheong and Mo.
They added: &ldquo Exchange rate volatility may continue to negatively affect revenue, particularly from Russia, as the rouble/USD rate continues to remain weak at 90.9 across July to August 2024.&rdquo
The analysts added that the new target of S$1 is pegged to 8.7 times the FY2024 price-to-earnings estimates, at 0.5 standard deviation below the long-term historical mean.
Given Food Empire&rsquo s plans to expand its manufacturing footprint, both Cheong and Mo continue to like the stock as they are positive on its growth prospects in South-east Asia and South Asia.
Citing Allied Market Research, they noted that South-east Asia is projected to clock a compound annual growth rate (CAGR) of 3.7 per cent to US$6 billion by 2029. South Asia is expected to grow 6.7 per cent CAGR to reach US$900 million in the same year.
&ldquo Given Food Empire&rsquo s growing market presence in these markets, we think that it is well-positioned to meet the rising global demand for instant coffee,&rdquo they said.
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Alignment
Master |
02-Sep-2024 20:07
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If Trump wins then Russia will benefit and South East Asia will worsen. So exactly the wrong scenario for the company' s current strategy. | ||
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