Food Empire

Food Empire - AGM on 24th April 3pm at Four Points by Sheraton Singapore, Riverview Jubilee Ballroom, 4th Storey, 382 Havelock Road, Singapore 169629.


0.6 cents dividend .EX date 27th April. Pay date 18th May 2018.

EGM date is also being set on the same day - 24th April , mainly to pass the The renewal of the Share Buyback Mandate. I think this may likely help to support the price and increase its NAV ..
Seems a good move to me.



Food Empire’s products include a wide variety of beverages, such as regular and flavoured coffee mixes and cappuccinos, chocolate drinks and flavoured fruit teas. It also markets instant breakfast cereal, potato crisps and assorted frozen convenience foods.

Coffee Beverages - Food Empire Holdings caters to different consumer tastes by offering a wide variety of beverages. We manufacture regular and flavoured coffee mixes and cappuccinos, instant chocolate, flavoured fruit teas and cereal drinks. Our core product – instant coffee beverages – is marketed mainly under the MacCoffee, Klassno, FesAroma and Bésame brands using some of the finest coffee beans.

Frozen Foods - Complementing our beverage business is our food product range that includes frozen finger food and confectionery. Our mouth-watering, ready-to-cook frozen convenience food, marketed under OrienBites and Klassno, are inspired by the unique delights of Oriental cuisine and the convenience of Western fast food. The selection comprises exotic delicacies like Tail-on Shrimp Dumplings etc

Snack Foods -Our Snack Food segment was launched in 2003. Kracks, the brand name for the range of snacks, comprises Potato Crisps, Apple chips and Rice Crackers. All the snacks are high on taste as well as health aspect. The potato crisps come in seven different delicious flavours from exotic to traditional, each catering to different palates and cravings. MacFood, comprises mainly seafood snack food.

Looking through their financial results for past 4 years , we can notice that the Total Revenue has been generally rising from $249m in 2014 to $269M in 2017 . This is quite positive.

Net Profit has also been a great improvement from a Loss of $13.6m in 2014 to a Profit of $13.3m.

NAV value has also been rising from US$0.2594 to US$0.31.45. This is rather encouraging and knowing that the company is growing and also increasing the Book value for the company.

Cash flow has been quite healthy as can be seen from the table below , it has risen from $6.05m in 2014 to $39.89m in 2017.

Return of Assets has been generally improving from 3.8% in 2013 to 7.6& in 2017. Which is rather positive.

Return of Equity has also been rising from 6.9% in 2013 to 8.3% - a high single digit grow rate in 2017.

FY2017 Net profit would be even higher if not because of the one-time divestment loss of 7.6m ( impairment of associate/goodwill etc).

I think this is a turning around company that has shown great improvement in bringing the company back to profitable condition and also generating a pretty good sets of Total net income to achieve an EPS of 3.9 cents ( excluding divestment loss, if not, rolling EPS would be 5.9 cents), PE of 16 times is pretty impressive.

This is a Net Net Position company as can be seen the Total Current Assets of $186.6m is more than enough to cover the Total Liabilities of $106.7m.

I have roughly workout the DCF cash flow intrinsic value for Food Empire, using a CAGR of 30% , discount factor of 20 %, I have derived a fair value of 82 cents.

I think the average industry PE for F&B is about 22 times , which may likely arrive a Target Price of 86 cents. Which is also quite close to the cash flow fair value.

I think the dir recently has been buying up share.

Not a call to buy or sell.
please do your own due diligence.

TA wise, it is being stucked in a consolidation mode patterns.
The Bollinger Bands is seemed being in a tight /squeezing condition and may either break-up or Breaking down.

SGX Mainboard-listed Food Empire Holdings (Food Empire) is a global branding and manufacturing company in the food and beverage sector. Its products include instant beverage products, frozen convenience food, confectionery and snack food.

Food Empire’s products are sold to over 50 countries, in markets such as Russia, Ukraine, Kazakhstan, Central Asia, China, Indochina, the Middle East, Mongolia and the US. The Group has 24 offices (representative and liaison) worldwide. The Group operates nine manufacturing facilities in India, Malaysia, Myanmar, Russia, Ukraine and Vietnam.

Food Empire’s products include a wide variety of beverages, such as regular and flavoured coffee mixes and cappuccinos, chocolate drinks and flavoured fruit teas. It also markets instant breakfast cereal, potato crisps and assorted frozen convenience foods.

Food Empire’s strength lies in its proprietary brands – including MacCoffee, Petrovskaya Sloboda, Klassno, Hyson, OrienBites and Kracks. MacCoffee – the Group’s flagship brand – has been consistently ranked as the leading 3-in1 instant coffee brand in the Group’s core market of Russia, Ukraine and Kazakhstan. The Group employs sophisticated brand building activities, localized to match the flavor of the local markets in which its products are sold.

Since its public listing in 2000, Food Empire has won numerous accolades and awards including being recognized as one of the “Most Valuable Singapore Brands” by IE Singapore, while MacCoffee has been ranked as one of “The Strongest Singapore Brands”. Forbes Magazine has twice named Food Empire as one of the “Best under a Billion” companies in Asia and the company has also been awarded one of Asia’s “Top Brand” by Influential Brands.