- Food Empire (SGX:F03) reported higher revenue of US$117.5mil for 1Q24, up 14.5% y-o-y, compared to US$102.6mil in 1Q23, led by strong growth in its South-East Asia and South Asia market, which saw a growth of 35.3% and 33.0% respectively. The company saw revenue growth across its other key markets, showcasing resilience in consumer demand amidst ongoing geopolitical tensions worldwide, in a high interest rate environment.
Rising cost of raw materials.
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FX headwinds from a strong US dollar.
- With inflation being more sticky than expected, the Federal Reserve put rate cuts on hold as it continues to look for signs of easing inflation. The market now expects two rate cuts for the rest of 2024.
- The prolonged high-interest rate environment has strengthened the US dollar, compared to local currencies in Food Empire’s key market. The Russian Ruble declined by 23.6% against the US dollar as compared to 1Q23, resulting in a lower y-o-y revenue growth rate for the Russian market after FX conversion. Other core markets of Food Empire also experienced continued depreciation against the US$ y-o-y.
Upbeat outlook
Resilient demand for Food Empire’s products.
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