Food Empire Holdings, the manufacturer of instant beverage products, frozen convenience food, confectionery and snack food, says profit before tax fell 86.2% to US$3.2 million ($4.5 million) while revenue fell 39.3% to US$134 million and for the year ended 31 December 2009.

But the group says it finished the year with a strong rebound in demand for its products resulting in a 58.2% increase in revenue to $48.5m in Q4 2009 compared to the Q3 2009. Compared to Q3 2009, revenue from Russia rose by 63.8% to $25.9 million, in Eastern Europe and Central Asia by 68.4% to $17.1 million and in other markets by 17.4% to $5.5 million.

Food Empire says two items impacted the group’s profitability: A US$706,000 ($995 million) impairment in goodwill and a US$1.7 million impairment in brand value. Excluding these items, the group’s profit before tax would have been US$5.6 million.

Compared to the end of 2008, Food Empire says inventory levels were down by 54.7%, trade receivables were down 39.9% and bank borrowings were down by 65.0%.

As at 31 December 2009, the group held net assets of US$123.7 million. This included US$61.3 million in cash and bank balances – an increase by 294.5%.