- Food Empire (SGX:F03) will invest US$80m in a new freeze-dried soluble coffee manufacturing facility in Vietnam. Construction is to begin in 1Q25 and is expected to complete by 2028.
- We believe that this is positive for the long-term outlook of Food Empire and aids in its diversification of revenue, especially from Russia.
- - Read this at SGinvestors.io -
Second freeze-dried facility
- This US$80m new facility will be the second freeze-dried soluble coffee manufacturing facility for Food Empire and will be located in Binh Dinh province, central Vietnam. The new facility will have a larger capacity than the existing freeze-dried facility in India and will be funded by internal resources and bank borrowings.
- - Read this at SGinvestors.io -
- It will be expected to strengthen Food Empire's position as one of Asia’s major players in spray-dried and freeze-dried soluble coffee.
Further diversification of revenue
- We view this as a positive for Food Empire as it will further grow its ingredient business and help diversify its revenue from Russia which has been a key concern for many investors.
- We believe that this will also likely add a strong recurring stream of revenue from 2028 onwards.
Better wait for headwinds to clear
- Read more at SGinvestors.io.
