SINGAPORE (May 10): Food Empire announced that its 1Q19 earnings rose 6.6% to US$7.7 million ($10.5 million) from US$7.2 million in 1Q18.
Revenue was 2% lower at US$70.7 million from US$72.1 million a year ago.
Sales from Russia dropped 4.4% y-o-y to US$29.2 million, mainly due to the depreciation of the RUB against the USD, despite revenue increasing in local currency terms.
Sales from Indochina increased by 15.2% y-o-y to US$14.5 million due to higher sales volume.
Sales from other markets dropped by 17.1% y-o-y to $11.3 million, mainly due to lower sales contribution from the group’s markets in Middle East as well as non-dairy creamer plant and snacks manufacturing facility in Malaysia.
As cost of sales dropped 2.0% y-o-y to US$42.3 million, gross profit for 1Q19 came in 2.0% lower at US$28.4 million from US$29.9 million in 1Q18.
Selling and distribution expenses declined by 15% y-o-y to US$10.1 million, while general and administrative expenses increased by 3.7% y-o-y to US$9.2 million.
As at end March, the group’s cash and cash equivalents stood at US$40.4 million.
In its outlook statement, Food Empire says the global economy is projected to grow at a slower pace for 2019, amid uncertain financial market sentiment, trade wars and volatility of the currencies in the countries where the group operates in.
Nonetheless, the group expects business to remain resilient and it will continue to focus its efforts to grow key markets, streamline business operations and simplify its group structure to achieve better operational efficiencies.
For the foreseeable future, the group is committed in ensuring that the construction of its second coffee plant in India remains on track. Additionally, it continues to be active in looking out for suitable mergers & acquisitions opportunities.
Shares in Food Empire closed at 52 cents on Friday.
