- Food Empire (SGX:F03)'s 1H24 revenue rose 13.6% y-o-y to US$225.2m, but PATMI declined by 12.8% y-o-y to US$23.2m, less than we expected, mainly due to short-term price disruption in Russia and higher raw material prices.
- - Read this at SGinvestors.io -
Better wait for headwinds to clear
- Food Empire’s business model has proven resilient and we are confident in management’s execution ability. As a result, we prefer to wait for short-term headwinds to clear and downgrade Food Empire to HOLD.
Higher coffee bean prices and inventory hurt margins
- As expected, higher coffee bean prices reduced Food Empire's 1H24 margins. Meanwhile, customers’ high inventory levels caused price disruptions across the country and there were more promotions to clear stock. As a result, Food Empire has to offer customers discounts, which may further impact margins.
- - Read this at SGinvestors.io -
Special dividends likely to be cut
- 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/ 2024-08-14
Read also Maybank's most recent report:
2024-11-13 Food Empire - Revenue Growth On Track.
Previous report by Maybank:
2024-09-12 Food Empire - US$80m New Freeze-Dried Facility In Vietnam.
Price targets by 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
