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PR Newswire
05-05-2011, 08:43 PM
Food Empire posts 15% drop in Q1 earnings
DESPITE a surge in revenue, Food Empire Holdings posted a 15 per cent year-on-year fall in net profit to US$3.4 million for the first quarter ended March 31, 2011.
Mr Tan: 'We continue to be aggressive in our brand-building activities and our efforts to expand our distribution base'
One factor was that the corresponding quarter last year included a tax writeback.
The first three months this year saw revenue climbing 31.3 per cent to US$50.8 million. But earnings were affected by higher raw material and transport costs, as well as increased operating expenses.
The improvement in revenue was supported by strong performance by the group's key markets. Giving a market breakdown, the group said that revenue increased by 43.4 per cent to US$30.2 million in its largest market, Russia.
Sales in Eastern Europe and Central Asia also increased by 17.2 per cent to US$15 million. In particular, the group grew its sales in Ukraine and Kazakhstan by 5.2 per cent and 31.2 per cent respectively.
Tan Wang Cheow, the group's chairman and managing director, said five consecutive quarters of double-digit revenue growth showed the group's strategy was on the right track.
'We continue to be aggressive in our brand-building activities and our efforts to expand our distribution base,' he added.
The group's net assets as at March 31, 2011 were US$138.5 million, representing a net asset value per share of 26.2 US cents, while cash and bank balances were US$33.4 million.
'The group expects its key markets to continue to perform well as global economic sentiments have remained relatively positive,' said Mr Tan. He also reported that the group's new markets continue to show potential.
Food Empire intends to pursue opportunities outside Russia to create a more balanced portfolio.
Looking ahead, the group warned that expected raw material price volatility in the coming 12 months would be one of its main challenges.
No dividends were declared this quarter.
Food Empire is a global branding and manufacturing company in the food and beverage sector. Its products include instant beverage products, frozen convenience food, confectionery and snack food.
Food Empire was last traded at $0.42.
DESPITE a surge in revenue, Food Empire Holdings posted a 15 per cent year-on-year fall in net profit to US$3.4 million for the first quarter ended March 31, 2011.
Mr Tan: 'We continue to be aggressive in our brand-building activities and our efforts to expand our distribution base'
One factor was that the corresponding quarter last year included a tax writeback.
The first three months this year saw revenue climbing 31.3 per cent to US$50.8 million. But earnings were affected by higher raw material and transport costs, as well as increased operating expenses.
The improvement in revenue was supported by strong performance by the group's key markets. Giving a market breakdown, the group said that revenue increased by 43.4 per cent to US$30.2 million in its largest market, Russia.
Sales in Eastern Europe and Central Asia also increased by 17.2 per cent to US$15 million. In particular, the group grew its sales in Ukraine and Kazakhstan by 5.2 per cent and 31.2 per cent respectively.
Tan Wang Cheow, the group's chairman and managing director, said five consecutive quarters of double-digit revenue growth showed the group's strategy was on the right track.
'We continue to be aggressive in our brand-building activities and our efforts to expand our distribution base,' he added.
The group's net assets as at March 31, 2011 were US$138.5 million, representing a net asset value per share of 26.2 US cents, while cash and bank balances were US$33.4 million.
'The group expects its key markets to continue to perform well as global economic sentiments have remained relatively positive,' said Mr Tan. He also reported that the group's new markets continue to show potential.
Food Empire intends to pursue opportunities outside Russia to create a more balanced portfolio.
Looking ahead, the group warned that expected raw material price volatility in the coming 12 months would be one of its main challenges.
No dividends were declared this quarter.
Food Empire is a global branding and manufacturing company in the food and beverage sector. Its products include instant beverage products, frozen convenience food, confectionery and snack food.
Food Empire was last traded at $0.42.
