Surprisingly, Food Empire has defied these concerns. In its 1HFY2022 results announcement, the first after fighting broke out, the company revealed that sales of its coffee not only remained stable but increased. For the first half of the financial year 2022, ending in June, sales in Russia saw a 4.8% y-o-y increase, while revenue from Ukraine and other former Soviet states surged by 17.2% y-o-y. Sales have further grown since then.
Tan Wang Cheow, executive chairman of Food Empire, explains how the coffee maker has navigated through multiple crises and outlines strategies for the upcoming growth phase
When the conflict between Russia and Ukraine broke out last February, shares of instant coffee maker Food Empire (SGX:F11
) plummeted from 67 cents to 48 cents within a month, reflecting a typical knee-jerk reaction to adverse news. The prevailing logic suggested that Food Empire — heavily reliant on revenue from both countries — would inevitably face significant setbacks.
