Food Empire Holdings has reported earnings of US$6.8 million for its 1QFY21, up 3.9% y-o-y. Revenue in the same period was up 3.4% to US$76.8 million, led by stronger demand for its products in southeast Asia.
The company also suffered lower forex losses and incurred lower sales related expenses. However, raw materials and transportation costs increased.
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Food Empire notes that its main market, Russia, continues to suffer from the pandemic although the situation is “generally under control” and it “has not faced any major interruptions” in its operations in 1Q2021.
However, since April 2021, Ukraine, is other key market, is seeing the peak of its third Covid-19 wave.
“Despite the uncertain and volatile operating conditions, the Board is confident that Group’s businesses will remain resilient, backed by an experienced management team and a healthy balance sheet,” the company says.
As at March 31, cash and cash equivalents stood at US$70.3 million and it can fulfil its near-term obligations, meet its debt covenants and service its debt obligations.
Food Empire shares on May 11 at 86 cents, down 2.84%.
