Food Empire H2 profit down 3.2% at US$28.9 million

FOOD Empire’s net profit fell 3.2 per cent to US$28.9 million for the second half ended Dec 31, 2024, from US$29.8 million in the same period the year before.

Meanwhile, its revenue rose 10.4 per cent to US$251.1 million from US$227.5 million, the food and beverage company said on Tuesday (Feb 25).

The group proposed a dividend per share of S$0.08, comprising a final dividend of S$0.06 and a special dividend of S$0.02.

Excluding special dividends, this is the third consecutive year of dividend increases, Food Empire noted.

Earnings per share for H2 stood at US$0.0549, down from US$0.0567.

For the full year, the company reported a net profit of US$52.5 million, down 7 per cent from US$56.5 million. Revenue came in at US$476.3 million, up 11.9 per cent from US$425.7 million.

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FY2024 marks Food Empire’s fourth consecutive year of revenue growth amid geopolitical challenges, group chief executive officer Sudeep Nair said.

The group also cited its diversification strategy and focus on the fast-growing Asia region. Its revenue was boosted by double-digit growth in its South-east Asia, South Asia, as well as Ukraine, Kazakhstan and Commonwealth of Independent States segments.

However, the gain was partially offset by a slight dip in its Russia segment, due to the depreciation of the Russian ruble against the US dollar.

As part of its regional expansion strategy, the company has invested in new production facilities in Asia, including a coffee-mix production facility in Kazakhstan that will be constructed by the end of 2025.

This will be Food Empire’s first such facility in Central Asia, and it will enable the group to serve markets in that region more efficiently, it said.

While it is “cautiously optimistic” about sustained business growth, it is also mindful of macroeconomic factors such as geopolitical challenges and heightened trade tensions that may cause currency volatility, it said.

It also noted that climate change has driven up the cost of its main raw material, coffee beans.

“The group remains vigilant of any potential impact that these events may have on its business, and will continue to conduct periodic reviews and manage its business strategies to mitigate these challenges,” it added.

Shares of Food Empire closed Tuesday down 1 per cent or S$0.01 at S$0.975.