SINGAPORE (Aug 12): Food Empire, the F&B manufacturing company, reported a 64.2% rise in 1H17 earnings to US$9.5 million ($12.9 million) from US$5.8 million a year ago on the back of 20.6% rise in revenue to US$125.2 million.
In 1H17, sales in the group’s largest market, Russia, increased by 17.5% to US$56.6 million compared to US$48.1 million mainly due to appreciation of the Russian Ruble against the US dollar.
In Kazakhstan and the CIS markets, sales increased by 57.5% to US$16.9 million in 1H17 from US$10.7 million in 1H16 mainly due to change in business model and reduction of price compensation to distributor in Kazakhstan coupled with aggressive promotion.
In its Indochina market, sales decreased by 6.8% to US$16.5 million due to the difference in the timing of the festive season and stiffer competition.
Food Empire says as currencies of the group’s key markets such as Russia, Ukraine, Kazakhstan and CIS countries improve together with the possible recovery in oil prices, the group expects the economies of these key markets to stabilise.
The group plans to continue on expanding into new geographies outside its core markets to provide a more balanced portfolio. Building on the group’s successful market diversification efforts in Indochina, the group plans to replicate its proven business model in other regions in Asia.
Shares in Food Empire closed 1 cent lower at 67 cents on Friday.
