- We expect the higher coffee bean prices to potentially hurt Food Empire (SGX:F03)’s margins, especially in 1H24E. We also expect management to increase its prices gradually but the financial impact will only come 6 months later.
- - Read this at SGinvestors.io -
Higher coffee bean prices to hurt margins
- Coffee bean prices have risen in the past 2 months to a high of US$240/lb, up 30%+, but have tapered down to around +10%. We expect Food Empire (SGX:F03)’s margins to suffer in the short term but we expect management to gradually raise product prices but this will only impact its financial performance typically 6 months later.
- - Read this at SGinvestors.io -
- Management has shown its execution prowess many times in the past and we believe this will likely just be a short-term blip for earnings.
Revenue growth intact
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Jarick Seet Maybank Research | Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2024-05-07
Read also Maybank's most recent report:
2024-08-14 Food Empire - Facing Headwinds; Downgrade To HOLD.
Previous report by Maybank:
2024-05-12 Food Empire - Revenue Growth Encouraging; Maintain BUY.
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
