12
CEO’S MESSAGE
MacCoffee sponsors Oddset Ice Hockey Games 2014
I will like to present our report card on the three key
areas that I mentioned previously that I will be putting a
strong emphasis on as CEO.
With regards to our plans to grow the Group’s
geographic presence, Food Empire’s diversification
in some markets, in particular Asia is showing progress
in recent years. Sales to the Group’s Other Markets
grew by 41.3% from US$26.7 million in FY2013 to
US$37.8 million in FY2014. The robust performance
was underpinned by a significant increase in beverage
sales in South East Asia which accounted for over 50%
of the growth. An uptick in sales was also recorded in
Europe, China and the Middle East. In the mid-to-long
term, our diversification efforts beyond the CIS region
will provide us with a more balanced portfolio that
allows us to be resilient in any future crisis.
In terms of merger or acquisition (M&A) activities,
we continue to be on the lookout for suitable target
companies that could complement our existing
businesses and help to diversify our operations.
In view of the current uncertain geo-political situation,
we will exercise caution and M&A will not be a key
priority for us till the situation normalises.
With respect to the streamlining and restructuring of our
operations, we continue to make significant headway.
The Group in year 2011 bought into a property in Port
Klang in Malaysia for the purpose of setting up a packing
plant and annexed administration processing centre.
The Group just recently managed to get the approval
for the International Procurement Centre status which
will allow the Group to enjoy a 10 year-tax exemption
status provided the terms and conditions are met.
During the year, production started and the shift from
the Singapore Chin Bee plant was also completed by
October 2014.
The Group also purchased an adjacent piece of land
at No. 81 Playfair Road, next to our current Singapore
HQ office towards end of December 2011. During the
year 2014, intensive development work took place and
today, we are witnessing the completion of the 11th
storey building. TOP certification is expected anytime
in the first half of 2015 and the process of looking for
new tenants has started.
Going forward, we will continue to monitor the geo-
political situation closely and take a prudent approach
towards our business operations. Nevertheless,
we remain optimistic that we will tide through this
difficult period with the help of our dedicated team.
I am very grateful for the support of my colleagues, the
Board, shareholders and other partners, as we continue
to execute on our future plans.
MR SUDEEP NAIR
Chief Executive Officer
MacCoffee promo booth in Kazakhstan
Food Empire Holdings Limited Annual Report 2014
