KGI Research Singapore

Singapore's leading broker offering Futures, FX, Equities and Wealth Management.

Company Update: Food Empire Holdings Ltd.

Company Update: 13 September 2023

Caffeine like no other

  • Strong Brand Portfolio. Food Empire has a strong portfolio of brands that are well known and trusted by consumers in many countries. The brand portfolio consists of 15 different brands spread across different regions and countries and spans across 3 different kinds of products. These brands allow the company to penetrate into the company’s key markets through localisation, catering to the culture and consumer preference within each individual market.
  • Diversified supply chain. The company has a strong, diversified supply chain with 7 global manufacturing plants in Russia, Ukraine, Vietnam, and Malaysia, efficiently meeting local demand. A new non-dairy creamer plant is being added in Malaysia. Furthermore, by sourcing from internal and external suppliers, the company reduces risk and optimizes costs. This strategy, along with strategic locations and expansion plans, enables Food Empire to tackle challenges, control expenses, and maintain a leading industry role.
  • Growing B2B business. Food Empire Holdings now combines B2C and B2B sales to diversify revenue streams. Selling to regional third-party businesses reduces shipping costs. A new NDC plant in Malaysia will boost B2B growth, aligning with the company’s expansion strategy. This approach positions Food Empire for new opportunities and a strong revenue base.
  • We initiate with an Outperform recommendation and a 12M target price of S$1.25.

Food Empire Holdings Ltd.

A global leader in the food and beverage industry. It operates across 60+ countries with a focus on Russia, Eastern Europe, and South-East Asia. The company has 8 manufacturing facilities in 5 countries and 23 global offices and offers a diverse portfolio of products, including beverages, snacks, and food ingredients.

Strong Cash position and drive growth.

Food Empire Holdings holds an impressive cash position of US$106.0 million, showcasing strong financial health. Its high cash ratio of 1.59x ensures it can clear debt, finance growth, and avoid extra borrowing or equity issuance. This solid financial position enhances investor confidence, attracting potential partners, investors, and lenders.

Valuation & Action

We initiate with an Outperform recommendation and a TP of S$1.25, based on a blended valuation: Discounted Cash Flow (DCF), with a terminal growth rate of 2% and a WACC of 12%, as well as a comparable Multiples Valuation with an industry price-to-sales multiple of 1.07x.


The company is exposed to a large amount of currency translation risk as it operates its business in several key markets, including Russia, Ukraine, Kazakhstan, Vietnam, India, and many more. It is important for the country to monitor the foreign exchange market of its key markets.

Subscribe Now