Food Empire has reported a revenue of US$118.9 million ($158.33 million) for the 3QFY2024 ended September, up 11.4% y-o-y from the same period last year.
For the 9MFY2024, the group’s revenue saw a 12.8% y-o-y increase to US$344.3 million.
The top line growth was mainly driven by revenue growth in its Southeast Asia, South Asia and Ukraine, Kazakhstan and CIS segments, which saw a y-o-y increase of 23.2%, 16.3% and 10.3%, respectively.
According to the group, the revenue increase from Food Empire’s South-East Asia segment was mainly due to Vietnam, which emerged as the group’s fastest growing market. The performance in Vietnam came on the back of the group’s marketing efforts across all channels including more brand-sponsored giveaways-with-purchase, which led to robust sales and increased brand awareness, adds Food Empire.
Meanwhile, revenue growth in the group’s South Asia segment was driven by increased sales volumes and higher pricing, which was in line with higher coffee prices.
Revenue from the group’s Ukraine, Kazakhstan and CIS segments was up in 3QFY2024 due to higher revenue from Kazakhstan following new revenue contributions from Tea House LLP, which became a subsidiary of the Food Empire in May.
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Moving forward, the group says it is closely monitoring the macroeconomic environment and geopolitical events for challenges, which may potentially impact its business in the short term.
In the longer term, the group adds that it has put in place strategic growth plans in some of its fastest growing segments. Food Empire remains optimistic that these initiatives, which are supported by its continuous investments in brand-building activities, product innovation and new product launches,
The group is expected to continue to conduct periodic reviews and adjust its sales and pricing strategies to mitigate rising raw material costs.
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Sudeep Nair, group CEO, says: “We believe Food Empire is well- positioned for future expansion in Asia where there is healthy economic growth, balancing some of the geopolitical challenges from our more traditional markets in Eastern Europe. Our diversification into ingredients manufacturing provides greater stability and control over the supply chain, while our investments in production capacity expansion for our own-brand products enable us to support increasing demand from key markets.”
Shares in Food Empire closed 1 cent lower, or down 0.98%, at $1.01 on Nov 11.
