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Food Empire announced its 1Q 2016 results. Looks like it have turned around.
Foreign exchange gain US$2.746m for 1Q 16
Foreign exchange loss US$7,991m for 1Q 15
Net asset value per ordinary share (USD cents) @ 31-Mar-16 : 26.77
Profit/(loss) per share Based on existing issued share capital (USD cents) for 1Q 16 : 0.75
Revenue for the first quarter ended 31 March 2016 (&ldquo 1Q2016&rdquo ) was US$50.5 million, a year-on-year (&ldquo yoy&rdquo ) decline of 1.8% compared with the US$51.4 million revenue recorded in 1Q2015.
In 1Q2016, sales of the Group&rsquo s largest market, Russia, decreased by 4.4% to US$24.3 million compared to US$25.5 million due to weakening of the Russian Ruble against the US dollar on a yoy basis. In local currency terms, Russia recorded higher revenue due to increase in selling price.
In the Group&rsquo s Ukraine market, sales improved by 20.0% from US$4.3 million in 1Q2015 to US$5.2 million in 1Q2016 due to higher selling price.
In the Group&rsquo s Kazakhstan market and CIS countries, sales decreased by 52.2% from US$8.0 million in 1Q2015 to US$3.8 million in 1Q2016 due to soft consumer sentiment, the weakening of local currencies and the change in business processes from distributor importer to direct import model.
In the Group&rsquo s Indochina market, sales increased by 43.4% from US$6.0 million in 1Q2015 to US$8.6 million in 1Q2016 as a result of higher sales due to wider distribution channels, aggressive advertising and promotion activities.
Sales of the Group&rsquo s Other Markets grew by 11.7% from US$7.7 million in 1Q2015 to US$8.6 million in 1Q2016 due to higher sales contribution from the non-dairy creamer plant in Malaysia.
http://foodempire.listedcompany.com/newsroom/20160511_190331_F03_IZ2U5QRI8CMOJOH4.1.pdf
Food Empire has not issued any div for last two years and it will take a while to turn caffee bene around. may see a few quarters of loss and another year without div. Don' t see short term catalyst to drive price up.
Other points:-
NAV @ 25.78 cents (US) which approx 34.8 cents (SG)
Basic & diluted EPS at 0.04 cents (US) which approx 0.054 cents (SG)
Carrying value of investment property @ US$15.275m
Fair value of investment property @ US$25.544m
Surplus @ US$10.269m which translate to about US$0.019275/share (approx S$0.026/share)
Also the land is freehold.
Was going through the 2015 Annual Report and noted the followings:-
Business Expansion & Geographical Diversification
Food Empire have made considerable results expanding and growing in South East Asia particularly Indo China. Hope there are further growth in these markets and at a much faster pace so as to reduce the dependency on Russia and Ukraine which is currently the top 2 markets for Food Empire.
Also, noted the Salim Group owns 24.79% equity interests in Food Empire and the Salim Group is a big conglomerate in Indonesia which include food business. Will Food Empire be able to explore ways to penetrate the Indonesia market with the help of Salim Group and if there are already plans to do so? This will be a huge boost to Food Empire.
Hedging (Natural Hedge)
I noted in 2015 annual report page 31 which it is stated the group relied on natural hedging to mitigate forex risks.
Any kind soul can help elaborate what is natural hedging and explain how is this performed?
Directors' Statement (2015 Annual Report) vs Directors' Report & Directors' Statement (2014 Annual Report)
I noted in the 2014 Annual Report Financials Section, there are the Directors' Report and Directors' Statement while in the 2015 Annual Report Financials Section, there is only the Directors' Statement. Any kind soul knows why the change and the significance of the change and if all required information is now streamlined into 1 report?
On the group basis, it is a loss but there is a small profits when apportioned between shareholders of the company and non controlling interests
Qanghoo ( Date: 10-Apr-2016 08:26) Posted:
I thought black liao ... eps close to 0.6c last FY?
fatpudge ( Date: 09-Apr-2016 19:34) Posted:
Loss is narrowing, hopefully 2016 is the year of turnaround
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not really sure if I am ready to put my money into the company as yet..yes it is cheap but these are not without valid reasons such as the company' s exposure to Russian and Ukraine markets (i.e. FX fluctuations and policitical stability). the recent acquisition of caffe bene is a promising venture to the Korean market but that is a loss-making business. so...maybe I am missing out something big...so while face value of the company seems compelling, there remains execution risks.
Secret_Squirrel ( Date: 09-Apr-2016 16:50) Posted:
23 cents looks a good price to enter?
Not much people wanted to sell at 23 cents.
n3wbie ( Date: 09-Apr-2016 09:01) Posted:
regardless the company' s share price performance, I always thought that their annual reports are one of the best among the small-mid caps in SG. there is a well thought-out theme to it every year, I recall there was apple iphone alike covers, star wars, lego, etc.
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I thought black liao ... eps close to 0.6c last FY?
fatpudge ( Date: 09-Apr-2016 19:34) Posted:
Loss is narrowing, hopefully 2016 is the year of turnaround
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Loss is narrowing, hopefully 2016 is the year of turnaround
23 cents looks a good price to enter?
Not much people wanted to sell at 23 cents.
n3wbie ( Date: 09-Apr-2016 09:01) Posted:
regardless the company' s share price performance, I always thought that their annual reports are one of the best among the small-mid caps in SG. there is a well thought-out theme to it every year, I recall there was apple iphone alike covers, star wars, lego, etc.
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regardless the company' s share price performance, I always thought that their annual reports are one of the best among the small-mid caps in SG. there is a well thought-out theme to it every year, I recall there was apple iphone alike covers, star wars, lego, etc.
Food Empire annual report this year is the best I have seen for this year:-
http://foodempire.listedcompany.com/misc/ar2015.pdf
Buy on potential growth. Was hit last ciuple yrs as exposed in russia n ukraine. They survived thks to gd mgmt team. Now they ready to west eu ctys...highly potential compared to super group
thanks! yeah saw this last evening too, great to see the management cutting their OPEX and streamlining operations to steer the company to profitability despite the volatile market conditions that they operate in. current valuations looks very appealing indeed given that they are trading under book value for a FMCG company.
Secret_Squirrel ( Date: 12-Aug-2015 22:33) Posted:
2Q2015 results just out. Turning in profit of US$7,007,000 for 2q2015.
n3wbie ( Date: 16-Jun-2015 14:36) Posted:
not sure if anyone else is following this counter but given that management guided during the AGM that the company will return to profitability if USD/RUBLE is in the range of $50-$55. looking at how the two currencies have traded in Q2, range of $49-$57, the median is in the range of low $50s. as such, it makes sense that the company should trend upwards as per UOB KH' s report published previously to its normalised levels of more than 30 cents. any inputs and opinions on this would be much appreciated, thanks!
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Hows their exposure in ukraine n russia markets now? Gd Co, gd mgmt, too bad us crash roubles
Secret_Squirrel ( Date: 12-Aug-2015 22:33) Posted:
2Q2015 results just out. Turning in profit of US$7,007,000 for 2q2015.
n3wbie ( Date: 16-Jun-2015 14:36) Posted:
not sure if anyone else is following this counter but given that management guided during the AGM that the company will return to profitability if USD/RUBLE is in the range of $50-$55. looking at how the two currencies have traded in Q2, range of $49-$57, the median is in the range of low $50s. as such, it makes sense that the company should trend upwards as per UOB KH' s report published previously to its normalised levels of more than 30 cents. any inputs and opinions on this would be much appreciated, thanks!
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2Q2015 results just out. Turning in profit of US$7,007,000 for 2q2015.
n3wbie ( Date: 16-Jun-2015 14:36) Posted:
not sure if anyone else is following this counter but given that management guided during the AGM that the company will return to profitability if USD/RUBLE is in the range of $50-$55. looking at how the two currencies have traded in Q2, range of $49-$57, the median is in the range of low $50s. as such, it makes sense that the company should trend upwards as per UOB KH' s report published previously to its normalised levels of more than 30 cents. any inputs and opinions on this would be much appreciated, thanks!
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not sure if anyone else is following this counter but given that management guided during the AGM that the company will return to profitability if USD/RUBLE is in the range of $50-$55. looking at how the two currencies have traded in Q2, range of $49-$57, the median is in the range of low $50s. as such, it makes sense that the company should trend upwards as per UOB KH' s report published previously to its normalised levels of more than 30 cents. any inputs and opinions on this would be much appreciated, thanks!
volume for this counter has picked up over the last few weeks, particularly today. coincidentally, or not, UOBKH issued a technical buy-call on Friday with a TP of S$0.35.
Food Empire (FEH SP) Technical BUY with 25% potential returns Last price: S$0.28 Target price: S$0.35 Protective stop: S$0.25 BUY with a target price of S$0.35 with stops placed at S$0.25. The stock appears to be supported at the low of S$0.26 for now and could be forming a Bollinger squeeze breakout towards the upside. A breakout at above S$0.29 could suggest further upside as the MACD indicator has been moving towards its centreline. Expected timeframe: 2 weeks to 2 months.
while many claim that Food Empire is a proxy play to the markets of Russia, Ukraine etc, it is worth noting that Russian Ruble is one of the strongest performing currency in 1Q2015 (
Bloomberg article). given Food Empire' s sales are denominated in the local currencies, shouldn' t an appreciation in Russian Ruble improve the overall valuation of the company?
Valuations ie PE are still v high At current price though...
Last:
0.39 Vol:
61k -
time to go in after getting whacked?
ozone2002 ( Date: 18-Jul-2014 11:18) Posted:
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