Food Empire Holdings (F03) H2 2023 earnings summary

Executive summary

• FY2023 revenue reached a record US$425.7m, up 6.9% YoY; operating profit was a record US$70.9m, up 34.6%.

• Excluding FY2022’s US$15.0m disposal gain, normalized net profit after tax rose 25.3% to US$56.5m in FY2023.

Financial highlights

• FY2023 gross profit rose 19.0% to US$141.5m; EBITDA increased 4.2% to US$86.9m.

• Reported FY2023 net profit after tax fell 6.0% to US$56.5m, reflecting the prior-year disposal gain; normalized net profit after tax increased 25.3%.

• 2H2023 revenue increased 2.9% YoY to US$227.5m; normalized net profit after tax rose 65.7% to US$29.8m, supported by higher operating margin and lower exchange loss.

Outlook and guidance

• Product demand is expected to remain strong across multiple geographies; India’s spray-dry and freeze-dry plants operated at full capacity and are expected to benefit from strong international demand.

• Vietnam is expected to grow, supported by targeted advertising and promotions; Malaysia creamer capacity commercial production is expected in the coming months, subject to final government approval.

• Kazakhstan and CIS markets continue to grow robustly; Russia and Ukraine demand remains resilient despite potential exchange-rate volatility.