Operations Review
(Extracted from Annual Report 2024)
Financial Performance
The Group has achieved the fourth consecutive year of topline growth with revenue reaching a new record of US$476.3 million for the financial year ended 31 December 2024 ("FY2024").
This is a 11.9% year-on-year increase from the previous high of US$425.7 million achieved in 2023 ("FY2023").
The stellar topline performance was a result of Food Empire's diversification strategy as well as its increasing focus on the fast-growing Asia region. Additionally, the Group's investments in brand building, distribution channels and product development have enabled its branded consumer products to continue to enjoy leadership position across all key markets.
In FY2024, the Group's revenue was boosted mainly by strong double-digit growth from its South-East Asia (up 27.3% to US$129.4 million), South Asia (up 24.9% to US$61.4 million) and Ukraine, Kazakhstan and CIS (up 12.6% to US$124.7 million) segments, and partially offset by a slight dip from its Russia segment (down 1.1% to US$141.7 million) due to the depreciation of the Russian Ruble against the US dollar. For the purpose of comparing underlying performance, Russia had achieved a 7.3% increase in revenue in local currency terms.
Excluding the fair value gain on redeemable exchangeable notes1 of US$2.8 million, Food Empire's normalised net profit after tax declined 11.4% to US$50.0 million in FY2024, reflecting the impact of record high coffee prices during the year, and also higher overall expenses. Sales and marketing expenses were up 14.2% due to an increase in consumer engagement activities, particularly from the Group's Vietnam market, while general and administrative expenses were up 15.6% mainly due to higher legal and professional expenses in relation to the issuance of the redeemable exchangeable notes1.
Financial Position
The Group's trade receivables increased by US$11.3 million from US$38.2 million as at 31 December 2023 to US$49.5 million as at 31 December 2024 mainly due to higher sales.
The Group's financial position remained healthy generating an operating cash inflow of US$25.5 million in FY2024 bringing its cash and cash equivalents to US$130.9 million as at 31 December 2024.
The Group's net assets as at 31 December 2024 was US$296.1 million. The net asset value per ordinary share (excluding non-controlling interests) as at 31 December 2024 was 55.84 US cents as compared to 56.20 US cents as at 31 December 2023.
