Food Empire Holdings (F03) H1 2023 earnings summary

Executive summary

• 1H23 revenue reached a record US$198.2m, up 11.8% YoY; operating profit rose 67.7% to US$34.6m.

• Net profit after tax fell 1.6% to US$26.6m as FX losses and a swing in associates from profit to loss offset higher operating profit.

Financial highlights

• Gross profit rose 33.7% to US$69.5m; profit before tax increased 4.8% to US$33.9m, and EBITDA rose 8.0% to US$41.3m.

• Selling and marketing expenses increased 15.9% to US$15.7m, mainly on advertising and promotions; G&A expenses rose 7.9% to US$19.2m, mainly on manpower.

• FX result swung from a US$7.3m gain in 1H22 to a US$1.1m loss in 1H23; net other expenses were US$0.8m versus US$8.5m other income.

Segment performance

• Russia revenue rose 23.6% to US$70.6m on higher volumes and pricing, partly offset by Ruble depreciation.

• Ukraine, Kazakhstan and CIS revenue increased 20.0% to US$49.5m, driven mainly by higher Kazakhstan and CIS volumes and pricing.

• South-East Asia revenue grew 1.0% to US$45.9m; higher Malaysia manufacturing contributions offset marginally lower Vietnam revenue.

• South Asia revenue rose 15.3% to US$21.7m, supported by the India freeze-dry coffee plant; spray-dry and freeze-dry plants operated at full capacity.

• Other Markets revenue fell 28.4% to US$10.5m, partly reflecting the FY22 Europe business divestment.