The y-o-y decline is largely due to short-term price disruptions in the Russian market, and increased raw material prices and operating costs and partly offset by higher contributions from the rest of Food Empire’s operating markets, the analysts note in their Sept 4 report.
UOB Kay Hian analysts John Cheong and Heidi Mo have downgraded Food Empire to “hold” after seeing “near-term headwinds” such as high coffee costs and the devaluation of the Russian ruble against the US dollar (USD).
Even though Food Empire’s earnings for the 1HFY2024 ended June 30 fell by 11.3% y-o-y to US$23.6 million ($30.8 million), this remained in line with Cheong and Mo’s expectations at 51% of their full-year estimate.
