On the back of the short-term price disruption in Russia following challenges in passing on higher prices to customers while input costs were elevated, gross profit margin contracted five percentage points (ppts) to 30%.
RHB Bank Singapore analyst Alfie Yeo has kept his “buy” call on Food Empire with a lower target price of $1.36 from $1.52 following a weaker-than-expected 1HFY2024 ended June.
In his September 2 report, Yeo notes that Food Empire’s 1HFY2024 Russia operations revenue declined 4% y-o-y to US$68 million due to the depreciation of the ruble despite achieving 13% y-o-y revenue growth in local currency terms.
