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Business Times
13-08-2025
- Business
- Business Times
Food Empire reports net loss of US$1.5 million, declares first-ever interim dividend of S$0.03
[SINGAPORE] Food Empire reported a net loss of US$1.5 million for the first half-year ended Jun 30, the group said in a bourse filing on Wednesday (Aug 13). This resulted from a US$32.6 million fair value loss on redeemable exchangeable notes issued by the company, as its share price rose significantly from the level at which the notes can be exchanged for shares. 'Mark-to-market adjustments to the redeemable exchange notes are required to be recognised in the group's interim consolidated income statement, even though they are non-cash and do not reflect operating performance,' Food Empire said. Loss per share in H1 2025 stood at US$0.0027, a reversal from earnings per share of US$0.0449 in H1 2024. Excluding the fair value loss, Food Empire's net profit after tax stood at US$31.5 million in H1 2025. This represents a 35.7 per cent increase compared to the year-ago period, on the back of higher revenue and gross margins across most core segments. Revenue rose 21.7 per cent to US$274.1 million in H1, from US$225.2 million previously. Cost of sales also grew, by 16.7 per cent to US$183.9 million from US$157.6 million in the year-ago period. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Group chief executive officer Sudeep Nair said Food Empire is 'on track to deliver yet another record-breaking performance in FY2025, barring unforeseen circumstances'. 'Our optimism is underpinned by the strength and leading position of our brands across all our markets as we continue to deliver robust results from our brand-building efforts,' he added. Food Empire declared an interim dividend for the first time, 'as a demonstration of strong business confidence'. The dividend of S$0.03 per share will be paid out on Sep 10. Growth in core segments For H1, the group said its Russia segment generated the highest revenue among its core segments, delivering a 21.6 per cent increase in sales to US$82.8 million. 'This was mainly due to price gains coupled with appreciation of the Russian ruble against the US dollar. In local currency terms, revenue rose by 17 per cent,' it added. Vietnam, its fastest-growing market, generated more than 60 per cent of the contributions from South-east Asia. The segment recorded US$77.5 million in revenue. Revenue from the group's Ukraine, Kazakhstan and Commonwealth of Independent States segment grew 19.4 per cent to US$68.4 million. This was due mainly to price gains and increased sales volumes from certain markets. The group's South Asia segment reported revenue of US$37 million, 25.1 per cent higher than in H1 2024. This was attributed to strong demand for both freeze-dried and spray-dried soluble coffee. Food Empire said its current project pipeline includes its first coffee-mix manufacturing facility in Kazakhstan in Central Asia, which is expected to be completed by the end of the year. In India, the expansion of its spray-dried soluble coffee manufacturing facility by 2027 will increase the facility's capacity by 60 per cent. A new freeze-dried soluble coffee manufacturing facility will open in Vietnam in 2028. Shares of Food Empire closed flat S$2.40 on Wednesday, before the announcement.
Yahoo
11-07-2025
- Business
- Yahoo
Food Empire to expand coffee manufacturing facility in India
Food Empire is investing $37m in expanding its spray-dried soluble coffee manufacturing facility in the Indian state of Andhra Pradesh. In a statement, the Singapore-listed group said the project would support "its fast-growing, branded, consumer business' and increase the facility's capacity by around 60%. Food Empire CEO and executive director Sudeep Nair said the company has reported 'four consecutive years of record revenue growth driven by the stellar performance' in the 'core branded consumer business'. He added: "This has given us the confidence to expand our ingredientsmanufacturing business, which will not only position us strongly as a leading player in soluble coffee in Asia but more importantly it will serve as a vital link to support the growth of our branded consumer business as we continue to invest in brand building activities across our markets." Food Empire's products, which also include cereal blends and potato chips, are sold in over 60 countries under brands such as MacCoffee, CaféPHỐ and Petrovskaya Sloboda, as well as Kracks. The expansion project in India is set to begin in the fourth quarter of 2025 and is expected to be finished by the end of 2027. In addition to the spray-dried facility, Food Empire operates a freeze-dried soluble coffee manufacturing facility in India. In September, the company revealed plans to establish another freeze-dried facility in Binh Dinh, Vietnam, by 2028, through a $80m investment. Food Empire reported a 16.3% increase in topline revenue, reaching $136.6m for the three months ending 31 March 2025. Revenues from Food Empire's Southeast Asia market reached $40m in the first quarter period, surpassing the group's Russian market, traditionally the group's largest revenue generator, for the first time. It marked a 33.8% increase from $29.9m in the same quarter of 2024, driven by sales in Vietnam. Food Empire's South Asia market was the second-best performer in the quarter, with revenue rising 31.7% to $19.1m in the first quarter of 2025, up from $14.5m in the first quarter of 2024. Announcing the results in May, Nair said: 'We expect our fastest growth to continue to come from Asia, driven by our strong brand positions and supported by a robust pipeline of capacity expansion projects that are currently being carried out in the region.' In March, Food Empire secured financial backing from the European Bank for Reconstruction and Development for its first coffee product site in Kazakhstan. Located in Khorgos, near the China border, the facility will produce coffee for retail and foodservice customers, including products under the MacCoffee brand. The group's Ukraine, Kazakhstan, and CIS markets segment also saw revenues grow 14.9% to $33.9m in the first quarter of 2025. The increase was primarily driven by Kazakhstan, where revenue rose 29%, reflecting contributions from Tea House, which became a subsidiary of Food Empire in May 2024. "Food Empire to expand coffee manufacturing facility in India " was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Times
10-07-2025
- Business
- Business Times
Food Empire to invest US$37 million to expand India coffee facility, eyes Asia for growth
[SINGAPORE] Food and beverage company Food Empire intends to invest US$37 million to expand the capacity of its spray-dried soluble coffee manufacturing facility in Andhra Pradesh, India. This will boost the facility's capacity by around 60 per cent and support the growth of Food Empire's core branded consumer business, the group said on Wednesday (Jul 9). The move comes as the performance of Food Empire's fast-growing branded consumer business has driven four straight years of record revenue growth, said Sudeep Nair, group chief executive officer and executive director of Food Empire. 'This has given us the confidence to expand our ingredients manufacturing business, which will not only position us strongly as a leading player in soluble coffee in Asia, but more importantly it will serve as a vital link to support the growth of our branded consumer business as we continue to invest in brand-building activities across our markets,' he said. The company said in its 2024 annual report that its ingredients manufacturing business, which includes freeze-dried and spray-dried soluble coffee manufacturing, has delivered strong results. Besides the ingredients manufacturing business, its portfolio also includes instant beverages and snack foods – such as flavoured coffee mixes, instant cereal blends and potato chips. The expansion comes under Food Empire's ongoing vertical integration initiatives to enhance control of its entire coffee processing cycle, and will sustain the leading position of its brands across its markets, the group said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Its products are sold in more than 60 countries across North Asia, Eastern Europe, South-east Asia, South Asia, Central Asia, the Middle East and North America. It also has nine manufacturing facilities in six countries. Construction works for the expansion are set to commence in the fourth quarter of 2025 and will complete by end-2027. Spotlight on Asia as strategic growth region Food Empire has made other recent investments in Asia, which it views as a 'strategic region of growth'. These include an upcoming coffee-mix production facilitiy in Kazakhstan, which is expected to be completed by end-2025, and an US$80 million freeze-dried soluble coffee manufacturing facility in Binh Dinh, Vietnam, announced in September 2024, which is set to be constructed by 2028. In particular, Food Empire's South-east Asia segment has climbed to become the largest contributor to its revenue for the first quarter ended March 2025. The segment's growth was mainly due to strong sales of branded consumer products in Vietnam, which has emerged as Food Empire's fastest-growing market in recent years as a result of the success of its brand-building activities. Revenue from Vietnam surged 44.6 per cent in Q1 2025 on the back of an enhanced sales force, effective marketing promotions and campaigns, and interactive consumer engagement activities that reinforced brand loyalty and boosted new customer acquisition. Shares of Food Empire finished Wednesday 2.2 per cent or S$0.04 higher at S$1.90.
Business Times
10-07-2025
- Business
- Business Times
Food Empire to invest US$37 million to expand soluble coffee manufacturing facility in India
[SINGAPORE] Food and beverage company Food Empire intends to invest US$37 million to expand the capacity of its spray-dried soluble coffee manufacturing facility in Andhra Pradesh, India. The move will increase the facility's capacity by around 60 per cent and support the growth of Food Empire's branded consumer business, the group said on Wednesday (Jul 9). Sudeep Nair, group chief executive officer and executive director of Food Empire, said that the performance of its fast-growing branded consumer business has driven four consecutive years of record revenue growth for the company. 'This has given us the confidence to expand our ingredients manufacturing business, which will not only position us strongly as a leading player in soluble coffee in Asia, but more importantly it will serve as a vital link to support the growth of our branded consumer business as we continue to invest in brand-building activities across our markets,' he said. The expansion comes under Food Empire's ongoing vertical integration initiatives to enhance control of its entire coffee processing cycle, and will sustain the leading position of its brands across its markets, the group said. Construction works are set to commence in the fourth quarter of 2025 and will complete by end-2027. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The company views Asia as a strategic growth region, with its South-east Asia segment having climbed to become the largest contributor to its revenue for the first quarter ended March 2025. The South-east Asia segment's growth was mainly due to strong sales of branded consumer products in Vietnam, which has emerged as Food Empire's fastest-growing market in recent years as a result of the success of its brand-building activities. Revenue from Vietnam surged 44.6 per cent in Q1 2025 on an enhanced sales force, effective marketing promotions and campaigns, and interactive consumer engagement activities that reinforced brand loyalty and boosted new customer acquisition. The group in September 2024 announced plans to establish an US$80 million freeze-dried soluble coffee manufacturing facility in Binh Dinh, Vietnam, which is set to complete by 2028. Shares of Food Empire finished Wednesday 2.2 per cent or S$0.04 higher at S$1.90
Business Times
13-05-2025
- Business
- Business Times
Food Empire reports 16.3% rise in revenue for Q1
[SINGAPORE] Food Empire posted a 16.3 per cent rise in its top line to US$136.6 million for the first quarter of FY2025 ended March, as most major markets delivered better performance. However, the firm did not give its net profit for the period in the update filed with the bourse on Tuesday (May 13). Contributing to the better performance was its dynamic pricing approach to cushion against inflationary pressures, rising operating costs and surging coffee bean prices, Food Empire said. Vietnam stood out as revenue from the South-east Asian nation surged 44.6 per cent, driven by an enhanced sales force, effective marketing, as well as interactive consumer engagement activities that reinforced brand loyalty, it added. Vietnam helped Food Empire's South-east Asia market to leapfrog Russia – its traditional top revenue market – and emerge as its best-performing market with US$40 million in sales, up 33.8 per cent year on year. Calling this an inflexion point in the group's Asia-centric strategy, chief executive Sudeep Nair expects the group's performance in Asia to be driven by its strong brand positions and supported by the pipeline of capacity expansion projects currently being carried out in the region. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Construction of a freeze-dried soluble coffee manufacturing facility in Binh Dinh Province, Vietnam, is expected to commence by the end of 2025 and be completed by 2028. Commercial output from the new snack manufacturing facility in Malaysia will be ready in the third quarter, which will expand output capacity by approximately 50 per cent. Construction of its first coffee-mix manufacturing facility in Kazakhstan is projected to be completed by end-2025 and will boost the group's total coffee-mix production capacity by approximately 15 per cent. In spite of the tariff turmoil, Food Empire does not expect any major impact because the US is not a significant market for the group. Food Empire shares rose 1.3 per cent or S$0.02 to S$1.53 at market close on Tuesday before this update was published.
