- We like Food Empire for its longer-term growth, as capacity expands. Food Empire has minimal exposure and impact to the US tariffs.
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Growth driven by higher capacity.
- Growth in the medium term will be driven by more production facilities which will boost sales volume. Malaysia’s snack production capacity is set to expand by 1H25. Food Empire’s first new coffee-mix factory in Kazakhstan is scheduled to open by FY25. It will increase its production capacity for coffee mixes by 15%. Finally, a new freeze-dried soluble coffee manufacturing facility in Vietnam has been planned to open by FY28.
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- Growth momentum remains strong and revenue continues to be driven by strong demand and sell through existing markets.
Raise FY25-26F earnings by 8% and 7%.
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