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Food Empire's 1HFY2022 earnings more than double to US$27.1 mil due to higher ASPs

·2-min read

Gross profit for the period increased by 8.1% y-o-y to US$52.0 million.

Food Empire has reported earnings of US$27.1 million ($37.2 million) for the 1HFY2022 ended June, more than double the earnings of US$11.5 million in the same period the year before.

See: Food Empire expects to see 'significantly higher' profit after tax for 1HFY2022

This was mainly attributable to the higher average selling prices (ASPs) across most of the group’s business segments.

Revenue for the 1HFY2022 increased by 18.5% y-o-y to US$177.4 million as revenue increased across the group’s markets, especially its South Asian market.

Gross profit for the period increased by 8.1% y-o-y to US$52.0 million.

Selling and marketing expenses decreased by 27.7% y-o-y to US$13.6 million on the back of lower advertising and promotional expenses, especially in the group’s Southeast Asian market.

In 1HFY2022, the group saw a foreign exchange gain of US$7.3 million from the $0.6 million in the same period the year before.

1HFY2022 EBITDA increased by 93.5% y-o-y to US$38.2 million.

Earnings per share (EPS) for the period stood at 5.03 US cents on a fully diluted basis.

Cash and cash equivalents stood at US$59.8 million as at June 30.

No dividend was declared for the period.

Looking ahead, the group says it will continue to manage rising inflation, high freight costs, supply chain issues and volatile exchange rates. It adds that it will continue to be “nimble” in its pricing in its Russia, Kazakhstan and the Commonwealth of Independent States (CIS) markets.

“Whilst supply chain issues have eased somewhat, the group will maintain a healthy level of inventory to ensure smooth operations,” it says in its Aug 11 statement.

For the FY2022 ending Dec 31, the group is expecting to record a one-off gain of $20.5 million before expenses once it disposes of its 100%-owned subsidiary, Food Empire Real Estates Pte. Ltd., within the financial year.

Food Empire Real Estates Pte. Ltd. is the owner of a freehold industrial property at 31 Harrison Road, which it sold for $49.25 million to the Lian Beng Group.

Shares in Food Empire closed 0.5 cent higher or 0.92% up at 55 cents on Aug 11.

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