Food empire

Half year EPS of US$0.0176 , let's say full year EPS of US$0.0362 = S$0.046. Trading at PE 11.5x base on today closing price of 54 cents, zero debts, I think undervalue is surfacing!


I have added a bit at 55 cents yesterday.

I think a few days ago,  Directo has purchased back some share.


I remember Super Group was bring brought over at PE 32x for $1.30 or $1.32 . I think EPS is about 4+ cents.

I think a reasonable PE of 18x that is $0.83 might be available.


Not a call to buy or sell.

Please do your own due diligence.

Food Empire’s 1H2018 revenue jumps 12.9% with higher gross margin of 39.5%


  Increase in revenue and gross profit to US$141.5 million and US$55.9 million respectively driven by sales volume growth in the Group’s key markets

 Net profit after tax was flat at US$9.4 million due to higher selling and administrative expenses, higher manpower cost and exchange loss  Group to continue its focus on new product launches and market diversification efforts going forward .

Gross profit was US$55.9 million, up US$7.5 million or 15.5% as compared to prior corresponding period. Similarly, gross profit margin improved by 90 bps, from 38.6% in 1H2017 to 39.5% in 1H2018.

 In  line  with  the  growth  in  sales,  selling  and  distribution  expenses  also  increased  by  US$5.0 million  or  26.2%  from  US$19.3  million  in  1H2017  to  US$24.3  million  in  1H2018.

  This  was mainly  attributable  to  higher  advertising  and  promotion  expenses  coupled  with  higher manpower  cost.

During  the  period  under  review,  the  Group  recorded  a  foreign  exchange  loss  of  US$1.6 million  in  1H2018  as  compared  to  a  foreign  exchange  gain  of  US$1.0  million  in  1H2017.

 As the  Group  is  economically  exposed  to  different  markets,  it  will  be  affected  by  the  fluctuation in  currencies  against  the  US  dollar.

Pursuant  to  the  above,  the  Group‘s  net  profit  after  tax  for  1H2018  was  flat  at  US$9.4  million.   As  at  30  June  2018,  the  Group’s  balance  sheet  remained  healthy  with  cash  and  cash equivalents  amounting  to  US$41.8  million.

   Commenting  on  the  Group’s  results,  Mr.  Tan  Wang  Cheow,  Executive  Chairman  of  Food Empire  said,  “The  Group  continues  to  perform  well  with  growth  registered  in  our  major geographical  markets  of  exposure.  Going  forward,  the  Group  strives  to  continue  with brand  building,  new  product  launches  and  market  diversification  efforts  so  as  to derive  new  avenues  for  top-line  growth  and  secure  better  value  for  shareholders.” Outlook Other  than  product  innovations  and  ongoing  promotional  activities  directed  at  enhancing brand  equity,  expansion  of  markets  into  new  geographical  regions  outside  that  of  its  core operations  remains  a  key  focal  area  for  the  Group.  Specifically  in  February  2018,  the  Group announced  plans  to  open  its  second  Instant  Coffee  processing  facility  in  Andhra  Pradesh, India.  This  venture,  with  the  support  of  Enterprise  Singapore  and  the  Government  of  Andhra Pradesh,  is  slated  to  complete  in  2020.  Upon  commencement,  it  should  provide  the  Group with  further  growth  prospects. -