[SINGAPORE] Food Empire reported a net loss of US$1.5 million for the first half-year ended Jun 30, the group said in a bourse filing on Wednesday (Aug 13).
This resulted from a US$32.6 million fair value loss on redeemable exchangeable notes issued by the company, as its share price rose significantly from the level at which the notes can be exchanged for shares.
“Mark-to-market adjustments to the redeemable exchange notes are required to be recognised in the group’s interim consolidated income statement, even though they are non-cash and do not reflect operating performance,” Food Empire said.
Loss per share in H1 2025 stood at US$0.0027, a reversal from earnings per share of US$0.0449 in H1 2024.
Excluding the fair value loss, Food Empire’s net profit after tax stood at US$31.5 million in H1 2025. This represents a 35.7 per cent increase compared to the year-ago period, on the back of higher revenue and gross margins across most core segments.
Revenue rose 21.7 per cent to US$274.1 million in H1, from US$225.2 million previously. Cost of sales also grew, by 16.7 per cent to US$183.9 million from US$157.6 million in the year-ago period.
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Group chief executive officer Sudeep Nair said Food Empire is “on track to deliver yet another record-breaking performance in FY2025, barring unforeseen circumstances”.
“Our optimism is underpinned by the strength and leading position of our brands across all our markets as we continue to deliver robust results from our brand-building efforts,” he added.
Food Empire declared an interim dividend for the first time, “as a demonstration of strong business confidence”. The dividend of S$0.03 per share will be paid out on Sep 10.
Growth in core segments
For H1, the group said its Russia segment generated the highest revenue among its core segments, delivering a 21.6 per cent increase in sales to US$82.8 million.
“This was mainly due to price gains coupled with appreciation of the Russian ruble against the US dollar. In local currency terms, revenue rose by 17 per cent,” it added.
Vietnam, its fastest-growing market, generated more than 60 per cent of the contributions from South-east Asia. The segment recorded US$77.5 million in revenue.
Revenue from the group’s Ukraine, Kazakhstan and Commonwealth of Independent States segment grew 19.4 per cent to US$68.4 million. This was due mainly to price gains and increased sales volumes from certain markets.
The group’s South Asia segment reported revenue of US$37 million, 25.1 per cent higher than in H1 2024. This was attributed to strong demand for both freeze-dried and spray-dried soluble coffee.
Food Empire said its current project pipeline includes its first coffee-mix manufacturing facility in Kazakhstan in Central Asia, which is expected to be completed by the end of the year.
In India, the expansion of its spray-dried soluble coffee manufacturing facility by 2027 will increase the facility’s capacity by 60 per cent. A new freeze-dried soluble coffee manufacturing facility will open in Vietnam in 2028.
Shares of Food Empire closed flat S$2.40 on Wednesday, before the announcement.
