SINGAPORE (Feb 28): Food Empire reported a loss of US$2.75 million ($3.63 million) in FY17, compared to earnings of US$2.92 million in FY18.
This translates to FY17 earnings of US$14.1 million, 2.6% lower than US$14.5 million in FY16.
Revenue during the quarter increased by 5.8% to US$74.1 million from US$70.0 million a year ago, due to higher contribution from the group’s Kazakhstan and CIS markets as well as other market.
This was partially offset by lower contribution from the group’s markets in Russia, Ukraine and Indochina.
Cost of sales also increased by 4.8% to US$45.6 million compared to US$43.5 million last year.
Hence, gross profit for 4Q17 stood at US$28.5 million, 7.5% higher than US$26.5 million in the previous year.
Other expenses surged to US$7.62 million compared to US$0.49 million last year, mainly due to impairment of loan to associates of US$3.6 million and impairment of an associate of US$4.28 million recorded in FY17.
During the quarter the group recorded US$3.81 million of share of loss of associates, from US$30,000 in the same period a year ago, mainly due to losses recorded by its Korean associate, Caffebene.
The group has declared a first and final cash dividend of 0.6 cents per share, which will be payable on May 18.
Looking forward, the group will continue to focus on expanding into new geographies outside its core markets to provide a more balanced portfolio.
The group has announced plans to expand its manufacturing facility in India, which will provide further growth prospects once the project is completed.
Shares in Food Empire closed at 66 cents on Wednesday.
