- Food Empire's 3Q22 core earnings of US$12m (+274% y-o-y/+45% q-o-q) was above expectations, while 9M22 core earnings of US$31m formed 97% of our full-year estimates. Margins are improving with Food Empire’s improved product mix and higher ASPs. Also, high freight and raw material costs which started in 2020 are easing.
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Food Empire's 3Q22 results above expectations due to higher average selling prices and one-off gain.
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- Additionally, there was a one-off gain of US$15m from the disposal of non-core assets. With the easing of commodity prices, record-high ocean freight rates, supply chain delays and start-up costs arising from the commencement of the group’s new freeze dry coffee plant in India, gross margin improved by a significant 3.3ppt y-o-y to 29%.
- Also, selling and marketing expenses declined 22% for 9M22, as lesser marketing was required, given the stronger-than-expected demand for Food Empire’s products.
Revenue growth across all markets.
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