- Food Empire (SGX:F03) reported 1Q24 revenue grew 14.5% y-o-y to US$117.5m as core markets all saw increased demand. Southeast Asia grew 35.3% y-o-y to US$29.9m due to increased marketing and promotional efforts.
- - Read this at SGinvestors.io -
- However, we believe Food Empire’s valuations remain undemanding, and management’s track record of execution has been good. Hence we maintain BUY.
Higher coffee bean prices to hurt margins
- We expect higher coffee bean prices to potentially hurt Food Empire’s margins, especially in 1H24E. We also expect management to increase its prices gradually but the financial impact will only come 6 months later. As a result, FY24E earnings will likely suffer due to lower overall margins ahead of recovery in FY25E.
- - Read this at SGinvestors.io -
Revenue growth across all core markets
- 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/ 2024-05-12
Read also Maybank's most recent report:
2024-09-12 Food Empire - US$80m New Freeze-Dried Facility In Vietnam.
Previous report by Maybank:
2024-08-14 Food Empire - Facing Headwinds; Downgrade To HOLD.
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
