"This has significantly boosted Food Empire’s Southeast Asia revenue contribution, taking the top spot and contributing to 29.2% of the group’s total sales in 1Q25," says KGI in its May 26 note.
"Demand for the group’s products in South Asia also remains strong amidst a coffee consumption boom in the region," adds KGI.
To meet growing demand, the company is "significantly" expanding its production capabilities across Asia, with a new freeze-dried soluble coffee facility is set to begin construction by late 2025 and become operational by 2028.
In addition, its Malaysian snack manufacturing facility will increase output by about 50% by the third quarter of 2025 after an expansion is completed in the first half. Outside Southeast Asia, Food Empire’s first coffee-mix plant in Kazakhstan is expected to be finished by the end of 2025, boosting overall coffee-mix capacity by approximately 15% and extending its reach into Central Asia.
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"These strategic expansions are set to drive continued top-line growth across its key Asian markets," says KGI.
