SINGAPORE (May 11): Food Empire reported 1Q18 earnings increased by 14% to US$7.19 million ($9.64 million), compared to US$6.31 million in 1Q17.
Revenue was 15.5% higher at US$72.1 million from US$62.4 million a year ago.
This was mainly due to higher revenue contribution from the all of the group’s markets – Russia, Ukraine, Kazakhstan and CIS markets, Indochina and Other Markets.
Russia contributed the most to the total revenue of US$30.6 million, 2.2% higher y-o-y, mainly due to appreciation of the Russian Ruble against the US dollar.
In the group’s Ukraine market, sales increased by 29.4% to US$5.7 million, due to restructuring in its distributorship and higher sales volume.
In the Kazakhstan and CIS markets, sales increased by 5.4% to US$9.7 million, mainly due to higher sales volume.
In the group’s Indochina market, sales increased by 78.1% to US$12.5 million, due to higher sales volumes and difference in timing of festive season.
Sales in the Other Markets increased by 14.9% to US$13.6 million, mainly due to higher sales contribution from the Group’s non-dairy creamer plant and snacks manufacturing facility in Malaysia.
Similarly, cost of sales was 14.9% higher at US$43.1 million, bringing 1Q18 gross profit to US$29.0 million, 16.5% higher than US$24.9 million in 1Q17.
Selling and distribution expenses rose 24.5% to US$11.9 million, while general and administrative expenses increased by 10.4% to US$8.84 million.
Net other income dropped by 37.4% to US$0.92 million from US$1.46 million a year ago.
Net finance costs more than halved to US$0.11 million from US$0.24 million last year.
Looking forward, the fluctuation of currencies in the Group’s key markets of Russia, Kazakhstan, CIS countries and Malaysia will continue to impact the results.
Shares in Food Empire closed at 67 cents on Friday.