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Financials

Unaudited Condensed Financial Statements For the second half year and full year ended 31 December 2023

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Consolidated income statement

Consolidated statement of comprehensive income

Balance sheet

Review of Performance

Revenue for the financial year ended 31 December 2023 ("FY2023") was US$425.7 million, a 6.9% increase compared with US$398.4 million in FY2022. The Group's operating profit increased from US$52.7 million to US$70.9 million. Excluding the one-off gain from the disposal of non-core asset of US$15.0 million recorded in FY2022, the Group's normalised net profit after tax increased from US$45.1 million in FY2022 to US$56.5 million in FY2023.

Revenue by Segments

In the Group's Russia segment, revenue in FY2023 decreased by 3.5% to US$143.3 million, from US$148.4 million in FY2022. This decrease was mainly driven by the depreciation of the Russian Ruble against the US dollar. The average exchange rate was 85.4 Ruble per US dollar in FY2023 as compared to 65.8 Ruble per US dollar in FY2022. The revenue recorded in local currency terms increased by 25.2% mainly due to the combination of higher volume and higher pricing.

In the Group's Ukraine, Kazakhstan and CIS segments, revenue for FY2023 increased by 21.1% to US$110.7 million, compared with US$91.5 million in FY2022. The increase was mainly due to a combination of higher volume and higher pricing in the Group's CIS and Kazakhstan markets.

In the Group's South-East Asia segment, revenue increased by 9.6% from US$92.7 million in FY2022 to US$101.6 million in FY2023 mainly due to increase in sales volume from the Group's Vietnam market.

In the Group's South Asia segment, the revenue increased by 24.1% to US$49.1 million in FY2023 from US$39.6 million in FY2022. This was driven by the increase in contribution from the Group's freeze dry coffee plant in India. Both the Group's freeze dry and spray dry coffee plants operated at full production capacity.

Revenue in the Group's Other segment decreased by 20.0% from US$26.2 million in FY2022 to US$21.0 million in FY2023 mainly due to the divestment of its European non-core frozen food business in FY2022.

On a half-yearly basis, the Group's revenue for 2H2023 increased by 2.9% to US$227.5 million as compared to US$221.0 million in 2H2022. The growth in revenue was mainly contributed by the Group's Kazakhstan and CIS markets, South-East Asia and South Asia segments partly offset by the Group's Russia segment in view of the depreciation of the Russian Ruble against the US dollar.

Profitability

For FY2023, excluding the one-off gain from the disposal of non-core asset of US$15.0 million recorded in FY2022, the Group's normalised net profit after tax increased from US$45.1 million in FY2022 to US$56.5 million in FY2023. This increase was mainly driven by higher revenue and better operating margin.

For 2H2023, excluding the one-off gain from the disposal of non-core asset of US$15.0 million recorded in FY2022, the Group's normalised net profit after tax increased from US$18.0 million in 2H2022 to US$29.8 million in 2H2023. The increase was mainly due to better operating margin coupled with lower exchange loss.

For FY2023, selling and marketing expenses increased by 10.2% from US$28.7 million in FY2022 to US$31.6 million in FY2023. For 2H2023, selling and marketing expenses increased by 5.1% from US$15.1 million to US$15.9 million. The increase was mainly due to higher advertising and promotional expenses.

For FY2023, general and administrative expenses increased from US$37.5 million to US$38.9 million. The increase was mainly due to higher manpower cost. For 2H2023, general and administrative expenses remain flat at US$19.7 million.

Balance Sheet & Cashflow

The Group's trade receivables increased by US$6.7 million from US$31.5 million to US$38.2 million as at 31 December 2023. This was mainly due to the higher sales recorded by the Group.

The Group generated a cash inflow of US$50.6 million from operating activities in FY2023 bringing its cash and cash equivalents to US$131.3 million as at 31 December 2023.

The Group's net asset as at 31 December 2023 was US$294.5 million. The net asset value per ordinary share (excluding non-controlling interests) as at 31 December 2023 was 56.20 US cents as compared to 51.84 US cents as at 31 December 2022.

Commentary

The demand for the Group's products is expected to remain strong across multiple geographies. However, some of the ingredient prices especially robusta coffee which we use in our branded coffee mix business is at historical high.

In the Group's Russia and Ukraine markets, the demand continues to be resilient despite the potential exchange rate volatility. In the Group's Kazakhstan and CIS markets, the Group continues to experience robust growth on the back of strong consumer demand.

In the Group's South-East Asia segment, Vietnam is expected to show promising growth supported by targeted advertising and promotions. The Group has completed its non-dairy creamer expansion in Malaysia. The commercial production of the newly added capacity is expected to commence over the next few months once the final approval from the Malaysia government is obtained.

In India, the Group's spray dry and freeze dry coffee plants have operated at full capacity and are expected to continue to enjoy strong international demand.

The Group will continue to closely monitor the global economic and geopolitical situation and navigate uncertainties by focusing on strengthening our brands even further.