Food Empire Holdings (F03) H1 2025 earnings summary

Executive summary

• 1H2025 revenue rose 21.7% YoY to US$274.060m, a record first-half result, with double-digit growth across all core segments.

• Normalised net profit after tax increased 35.7% to US$31.498m; reported net loss after tax was US$1.094m, mainly reflecting a one-off, non-cash REN fair-value loss.

• Management said FY2025 was on track for another record performance, barring unforeseen circumstances; a first-ever interim dividend of S$0.03 per share was declared.

Financial highlights

• Revenue was US$274.060m versus US$225.246m; gross profit rose 33.3% to US$90.170m and operating profit increased 50.2% to US$42.757m.

• Reported EBITDA fell 46.2% to US$19.6m; normalised EBITDA, excluding the US$32.592m REN fair-value loss, rose 43.3% to US$52.215m.

• Excluding the REN fair-value loss, pretax profit rose 44.9% to US$42.296m and profit after tax increased 35.7% to US$31.498m.

• Operating cash flow was US$32.378m; cash and cash equivalents ended the period at US$135.322m.

Outlook and guidance

• Management expects another record FY2025 performance, barring unforeseen circumstances, with growth momentum supported by brand strength and investment.

• Planned manufacturing pipeline: Kazakhstan coffee-mix facility by end-FY2025; India spray-dried soluble coffee expansion by FY2027, adding 60% capacity; Vietnam freeze-dried soluble coffee facility by FY2028.

• Brand-building, product development and marketing investment will continue to support brand equity, market share and growth.