- We continue to like Food Empire for its longer-term growth prospects, driven by capacity expansion. 1H25 core operating profit exceeded our estimate.
- We raise FY26-27F earnings on better-than-expected growth traction, driven by higher manufacturing capacity across Malaysia, Kazakhstan, India, and Vietnam.
1H25 core operating profit outperformed estimates.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Revenue from South Asia grew 25% y-o-y to US$37m on stronger demand for both freeze-dried and spray-dried soluble coffee.
- Food Empire’s gross margin of 32.9% outpaced our expectation. As a result, EBIT margin was at a strong 15.6% (+3ppt), which also outperformed our estimate. Its 1H25 headline net loss was US$1.5m, as it booked a US$33m one-off loss on its redeemable exchange notes. Otherwise, core PBT would have been US$43m (+45% y-o-y), i.e. above expectations.
- Food Empire declared a maiden interim dividends of 3 cents per share.
Raise FY26-27F core earnings by 13% each.
- Read more at SGinvestors.io.
