This is due to strong sales of its branded consumer products in Vietnam, which the group says is its fastest growing market.
Revenue from Vietnam surged 44.6% this quarter, driven by the combination of an enhanced sales force, effective marketing promotions and campaigns, as well as interactive consumer engagement activities that reinforced brand loyalty and increased new customer acquisition.
The group’s South Asia segment saw a revenue growth of 31.7% y-o-y this quarter due to increased market demand for both freeze-dried and spray-dried soluble coffee with both facilities running at full capacity.
Meanwhile, the group’s Ukraine, Kazakhstan and CIS market segments saw revenue growth of 14.9% y-o-y this quarter driven by contributions from Tea House LLP, which became a subsidiary in May 2024.
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Food Empire’s Russia segment recorded a 0.5% y-o-y increase in revenue for the quarter — this was driven by the group’s pricing strategy amid a highly volatile Russian ruble which the group says continues to present challenges for consistent price positioning.
The group says that it is cautiously optimistic of sustaining its strong topline performance because of ongoing investments in brand building as well as the market leadership position of its brands.
High coffee bean prices due to climate change, and geopolitical challenges such as heightened trade tensions are factors that the group is mindful of. However, it does not expect any major impact from the tariffs because the US is not a significant market for the group.
Shares in Food Empire closed 2 cents higher or 1.324% up at $1.53 on May 13.
