SINGAPORE (Nov 11): Food Empire Holdings saw its earnings jump 34.4% to US$7.9 million ($10.7 million) for 3Q19 ended September, from US$5.9 million a year ago, on the back of higher revenue and lower expenses during the quarter.
On a fully diluted basis, this translates to earnings per share of 1.46 US cents for 3Q19, compared to 1.08 US cents in 3Q18.
3Q19 revenue rose 5.4% to US$76.8 million, led by higher sales in the Indochina, Ukraine, Russia, Kazakhstan and CIS markets.
Gross profit climbed 8.3% to US$30.5 million during the quarter, compared to US$28.2 million a year ago.
General and administrative expenses fell 7.1% to US$9.0 million in 3Q19.
As at end-September, cash and cash equivalents stood at US$44.6 million.
“I’m pleased to note that we remain on track to implement our multi-year plan to strengthen the group by focusing on sustainable growth through organic initiatives and pursuing M&A opportunities,” says Tan Wang Cheow, executive chairman of Food Empire.
“Meanwhile we are continuing efforts to rationalise our underperforming businesses, streamline operations and consolidate our group structure,” he adds.
Going forward, the group says it expects business to remain resilient despite ongoing US-China trade tensions, but adds that it may face currency volatility in its core markets.
It notes that construction of the group’s second coffee plant in India is on track and trial production is expected to commence in early 2020.
Shares in Food Empire closed flat at 54 cents on Monday, before the results announcement.
