- Food Empire (SGX:F03) reported higher revenue of US$476.3mil for FY24, up 11.9% y-o-y, compared to US$425.7mil in FY23, led by strong growth in its South-East Asia and South Asia market, which saw a growth of 27.3% and 24.9% respectively. The company’s Ukraine, Kazakhstan and CIS market saw a growth of 12.6% y-o-y, while the Russian market saw a slight decrease in revenue by 1.1% y-o-y.
- - Read this at SGinvestors.io -
- However, the company reported a decrease in net profit after tax by 6.4%, from US$56.5mil in FY23 to US$52.9mil in FY24 due to higher ingredient prices, as well as continued strong market investments in the company’s Southeast Asia markets.
Rising cost of raw materials.
- - Read this at SGinvestors.io -
- Meanwhile, global supply chain challenges have further strained the market, as traders and roasters face soaring costs that retailers are reluctant to absorb. Inflationary pressures— particularly higher labor, fertilizer, and energy costs—have also contributed to the sharp rise in production expenses, pushing coffee prices to historic highs and impacting consumers worldwide.
- For Food Empire, higher coffee prices continue to drive up production costs. To mitigate the impact, the company is gradually adjusting its selling prices, passing on some of the increased costs to customers while maintaining profit margins. Despite these price hikes, consumer demand remained resilient, supported by the strong appeal of the group’s products.
Upbeat outlook
Resilient demand for Food Empire’s products.
- Read more at SGinvestors.io.
