Company Update: 5 November 2025
Growing Across All Regions
- Strong topline growth across all regions. Food Empire experienced a sustained increase in sales across its core markets in 1H25, showcasing continued strong consumer demand for the company’s products. The company’s Southeast Asia and South Asia regions saw the largest growth of 25.3% and 25.1% in 1H25 respectively. Vietnam remains as the group’s fastest growing market, with revenue growing 36.6% YoY, and contributing to 60.0% of the group’s Southeast Asia revenue. Demand for the group’s products in Russia, as well as its Ukraine, Kazakhstan and CIS markets also remains strong, reporting a growth of 21.6% and 19.4% respectively.
Continued Vertical Integration
Food Empire is significantly expanding its production capabilities across key markets to meet growing demand. The company’s 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 FY2025; in India, the expansion of its spray-dried soluble coffee manufacturing facility by FY2027 will increase the facility’s capacity by 60.0%; as well as a new freeze-dried soluble coffee manufacturing facility in Vietnam by FY2028. These strategic expansions are set to drive continued top-line growth across its key Asian markets.
First-Ever Interim Dividend
Food Empire declared an interim dividend of 3.0 Singapore cents per ordinary share as a demonstration of strong business confidence. This is the first-ever interim dividend declared by the Group.
1H25 Financial Results
Food Empire Holdings reported higher revenue of US$274.1mn for 1H25, up 21.7% YoY, compared to US$225.2mn in 1H24, led by strong growth across all its key markets, which continued to see robust consumer demand. The company’s topline was supported by higher sales volume and price gains, coupled with the appreciation of currencies in its key markets against the US dollar. The company also reported an operating profit of US$42.8mn in 1H25, up 50.2% YoY, compared to US$28.4mn in 1H24. Normalised net profit after tax also rose by 35.7% to US$31.5mn in 1H25, compared to US$23.2mn in 1H24.
Valuation & Action
We maintain an OUTPERFORM recommendation and increase our TP to S$2.69, based on a blended approach of Discounted Cash Flow (DCF) valuation, with a terminal growth rate of 2% and a WACC of 9.0%, and a target price to sales ratio 1.5x representing an upside of 18.8%. We anticipate demand to remain healthy across key markets, and the company’s strong business momentum in 1H25 to continue in FY25. The company’s expansion plans are expected to increase its production capabilities and drive higher sales. The company also maintains a strong cash position in FY24, reflecting its ability to generate cash flow to fund its future expansions. Its robust supply chain and market presence across several regions also give it a competitive advantage over its peers.
