FOOD Empire posted a 11.3 per cent drop in net profit to US$23.6 million for its first half ended Jun 30, 2024, from S$26.7 million in the previous corresponding period.
The food and beverage manufacturer saw lower profit contributions from its Russia market amid short-term price disruptions, it said in a regulatory filing on Monday (Aug 12).
The decrease was partly offset by higher profit contributions from its other segments, however, in spite of higher ingredient prices and operating expenses, including expenses related to brand building activities, the company added.
Earnings per share stood at 4.49 US cents for the half-year period, down from 5.03 cents the previous year.
Revenue for H1 rose 13.6 per cent to US$225.2 million, from US$198.2 million a year earlier. This was mainly driven by an increase in sales in its South-east Asia, South Asia, and Ukraine, Kazakhstan and Commonwealth of Independent States segments.
No dividend was declared for the half year, unchanged from the year before.
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The company said Vietnam is its fastest-growing market in 2024 to date.
It also achieved higher revenue in Malaysia, due to increased demand from Middle East and East Asian markets, supported by higher production volume from its expanded non-dairy creamer factory in the second quarter of 2024.
Sudeep Nair, group chief executive of Food Empire, said: “We are very excited about the performance of our South-east Asia and South Asia segments, which have maintained a strong growth trajectory due to the successful execution of our business strategies…
“We intend to allocate more resources to these segments as part of the group’s plans to further develop our business there,” he added.
Shares of Food Empire closed at S$0.985 on Monday, up 1 per cent or S$0.01, before the release of the results.
