FY2023 revenue stood at a record US$425.7 million, 6.9% higher y-o-y, mainly due to higher volumes and, or higher average selling prices (ASPs) and in spite of the depreciation of the Russian ruble and Ukrainian hryvnia against the US dollar (USD). In South Asia, the company’s higher revenue stemmed from higher contribution from its freeze dry coffee plant in India.
Gross profit surged by 19.0% y-o-y to US$141.5 million. Gross profit margin (GPM) rose by 3.4 percentage points y-o-y to 33.2%.
Earnings for the 2HFY2023 fell by 9.6% y-o-y to US$29.8 million, although without the one-off disposal gain, 2HFY2023 earnings would’ve been up by 65.6% y-o-y.
Revenue for the six-month period rose by 2.9% y-o-y to US$227.5 million.
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Gross profit was up by 7.6% y-o-y to US$71.9 million, while GPM rose by 1.4 percentage points y-o-y to 31.6%.
For the period, Food Empire proposed a record dividend of 10 cents per share, comprising a first and final dividend of 5 cents and a special dividend of 5 cents. The dividend, if approved, will be paid on May 17.
As at Dec 31, 2023, cash and cash equivalents stood at $131.3 million.
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Looking ahead, Food Empire expects demand for its products to remain strong across multiple geographies. That said, some of the prices of its ingredients – such as robusta coffee, which it uses in its branded coffee mix business – is at a historical high.
Demand also remains resilient in Russia and Ukraine despite the potential volatility in the exchange rate. Meanwhile, the company says it continues to see growth in Kazakhstan and the Commonwealth of Independent States (CIS) due to strong consumer demand.
Vietnam is also looking to show “promising growth” thanks to targeted advertising and promotions. In Malaysia, Food Empire has completed its non-dairy creamer expansion, which is expected to begin in the next few months once it has obtained the final approval from the Malaysian government.
In India, Food Empire’s spray dry and freeze dry coffee plants have operated at full capacity and are expected to continue to enjoy strong international demand.
Shares in Food Empire closed 1 cent higher or 0.69% up at $1.45 on Feb 27.
