Food Empire - Maybank Research 2024-09-12: US$80m New Freeze-Dried Facility In Vietnam

• 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.
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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.

Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2024-09-12 SGinvestors.io

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