While revenue is expected to see growth on strong demand and increased marketing efforts, particularly from the Southeast Asia segment, the analysts believe that margins are likely to take a hit from currency devaluation and rising coffee prices.
UOB Kay Hian is keeping its “hold” recommendation on Food Empire Holdings (SGX:F03
) but with a higher target price of $1.10 from $1.00 previously.
In its Jan 20 report, analysts John Cheong and Heidi Mo are upbeat on the group’s upcoming 2HFY2024 ended December 2024 earnings release on Feb 26 after trading hours. “We are expecting 2HFY2024 net profit at US$22 million – US$23 million (vs 1HFY2024: US$24 million, 2HFY2023: US$30 million). This will bring full-year net profit to US$46 million – US$47 million.”
