Food Empire Holdings F03 has reported earnings of US$15.7 million ($21.3 million) for the 1QFY2023 ended Sept 30, 30.6% lower y-o-y from US$22.6 million in the year before period,
This was mainly due to an absence of a one-off gain of US$15.0 million from the disposal of a non-core asset recorded in 3QFY2022, and partly offset by better operating profits and lower exchange loss.
The group’s revenue stayed relatively stable, slipping only 1.6% y-o-y to US106.8 million for the quarter, mainly due to the group’s Russia segment in view of the depreciation of the Russian Ruble.
This was partly offset by higher contributions from Food Empire’s Vietnam and Kazakhstan markets as well as the group’s coffee manufacturing plants in India. The group notes that all core markets including Russia recorded higher revenue in local currency terms for 3QFY2023.
Meanwhile, Food Empire’s operating profit increased by 38.2% to US$19.7 million during the period. The group’s gross profit climbed 16.4% to US$36.6 million and gross profit margin rose 5.3 percentage points to 34.3% in 3QFY2023.
For the nine months ended September, Food Empire says that its revenue and operating profit are at “historic highs”, with revenue up by 6.7% y-o-y to US$305.1 million and operating profit up by 55.7% to US$54.3 million.
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The group generated a cash inflow of US$24.5 million from operating activities in 9MFY2023 bringing its cash and cash equivalents to US$115.6 million as at Sept 30.
In its press release, Food Empire says it is “performing well” in all its core markets and exhibiting robustness in the demand for its products.
However, Food Empire notes that it remains cautious as the global geopolitical situation continues to develop and it faces currency volatility in all its core markets. “The group continues to monitor global geopolitical developments and economic policy changes closely and is cautious of any supply chain challenges that may arise going forward.”
Shares in Food Empire closed 2 cents or 1.8% down at $1.09 on Nov 8.
