- 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.
- - Read this at SGinvestors.io -
Food Empire's 3Q22 results above expectations due to higher average selling prices and one-off gain.
- - Read this at SGinvestors.io -
- 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.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Heidi Mo UOB Kay Hian Research | John Cheong UOB Kay Hian | https://research.uobkayhian.com/ 2022-11-14
Read also UOB's most recent report:
2024-02-29 Food Empire - 2023 Exceeds Expectations With Record-High Dividend & Core Earnings.
Previous report by UOB:
2023-11-10 Food Empire - Raise Target Price By 20%; 3Q23 Results Beat Expectations As Demand Still Reigns In Core Markets.
Price targets by 3 other brokers at Food Empire Target Prices.
Listing of research reports at Food Empire Analyst Reports.
Relevant links:
Food Empire Share Price History,
Food Empire Announcements,
Food Empire Dividends & Corporate Actions,
Food Empire News Articles
