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This is unlike FY2020 when the food manufacturer’s sales had taken a hit for almost two months after strict lockdowns were imposed across the markets it operates in. However, Seet notes that the management has “learnt to solve these problems and does not expect such matters to be repeated”. While FY2020 revenue had inched down y-o-y across the markets, he observes that they have “improved robustly” on q-o-q basis, since 2QFY2020 ended June. Excluding foreign exchange costs, he says that the company would have recorded an impressive earnings growth of 87% q-o-q. Seet anticipates demand for Food Empire’s products to be resilient in its last quarter ended in December as well as in FY2021. He is expecting its recurring PATMI (profit after taxes minus interest) to edge up by 10%, 20% and 5% between FY2020 to FY2022.
SEE: Food Empire receives SGX query after share price closed 18.1% higher