RHB Group Research is keeping its “buy” call on Food Empire with a target price of 75 cents as the stock turned out to be more resilient than expected amid the Covid-19 pandemic.

In its latest 1H20 results, the group recorded earnings of US$13.4 million, just 1.1% higher than the previous year. Revenue was however 4.0% lower y-o-y at US$132.9 million, due to disruptions from a national lockdown in the group’s main market Russia, as well as the depreciation in Russian ruble.

Production has also been affected by lockdowns, as the group’s coffee plant in India faced cancellations and postponement of orders from customers.

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