News

First Quarter Financial Statement And Dividend Announcement

BackMay 22, 2003

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

    1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year



       

      Group
      Group
      % Increase/
      (S$'000)
      (S$'000)
      (Decrease)
      1Q 2003
      1Q 2002
      Revenues
      29,387
      20,363
      44.32
      Costs and expenses
      Changes in inventories in finished goods
      341
      (805)
      NM
      Raw materials and consumables used (Note 1)
      (14,557)
      (8,903)
      63.51
      Depreciation and amortisation expenses
      (311)
      (215)
      44.65
      Foreign exchange (loss)/gain
      (74)
      155
      NM
      Other operating expenses
      (10,406)
      (7,429)
      40.07
      Other income/(expenses)
      136
      25
      NM
      Total costs and expenses
      (24,871)
      (17,172)
      44.83
      Profit from operating activities
      4,516
      3,191
      41.52
      Finance costs
      (5)
      (13)
      (61.54)
      Share of loss of associated company
      (53)
      (79)
      (32.91)
      Profit from ordinary activities before taxation
      4,458
      3,099
      43.85
      Taxation
      (1,025)
      (636)
      61.16
      Minority interests, net of taxation
      (511)
      (234)
      118.38
      Net profit for the period
      2,922
      2,229
      31.09



      NM - Not meaningful

      Note 1:
      The increase in raw materials and consumables used is proportionally higher than the increase in revenue due to the changes in inventories of finished goods.

    1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year



       

      Group
      Company
      31/03/2003
      31/12/2002
      31/03/2003
      31/12/2002
      (S$'000)
      (S$'000)
      (S$'000)
      (S$'000)
      Assets Less Liabilities
      Non Current Assets
      Fixed assets
      13,071
      11,994
      -
      -
      Investments in subsidiary companies
      -
      -
      12,676
      12,676
      Investment in associated company
      1,209
      448
      1,242
      428
      Deferred tax assets
      218
      218
      -
      -
      Intangible assets
      54
      59
      -
      -
      14,552
      12,719
      13,918
      13,104
      Current assets
      Cash and bank balances
      6,944
      8,122
      30
      47
      Trade receivables
      15,732
      15,880
      -
      -
      Prepayments, other deposits and other receivables
      6,061
      3,840
      114
      108
      Amount due from subsidiary companies
      -
      -
      21,416
      21,306
      Amount due from associated company
      195
      991
      195
      991
      Inventories
      29,575
      29,221
      -
      -
      58,507
      58,054
      21,755
      22,452
      Current liabilities
      Trade payables
      (8,281)
      (10,619)
      -
      -
      Bills payable
      (1,084)
      (167)
      -
      -
      Other payables
      (4,164)
      (4,210)
      (237)
      (211)
      Finance lease liabilities
      (7)
      (7)
      -
      -
      Provision for taxation
      (2,784)
      (2,599)
      (27)
      (2)
      (16,320)
      (17,602)
      (264)
      (213)
      Net current assets
      42,187
      40,452
      21,491
      22,239
      Non-Current Liabilities
      Finance lease liabilities
      (25)
      (28)
      -
      -
      Deferred tax liabilities
      (308)
      (306)
      -
      -
      (333)
      (334)
      -
      -
      Net assets
      56,406
      52,837
      35,409
      35,343
      Equity
      Share capital
      17,200
      17,200
      17,200
      17,200
      Reserves
      36,173
      33,142
      18,209
      18,143
      53,373
      50,342
      35,409
      35,343
      Minority interest
      3,033
      2,495
      -
      -
      56,406
      52,837
      35,409
      35,343



       

    1(b)(ii) Aggregate amount of group's borrowings and debt securities


      Amount repayable in one year or less, or on demand

      As at 31/03/2003
      As at 31/12/2002
      Secured
      Unsecured
      Secured
      Unsecured
      (S$'000)
      0
      (S$'000)
      1,091
      (S$'000)
      0
      (S$'000)
      174



      Amount repayable after one year

      As at 31/03/2003
      As at 31/12/2002
      Secured
      Unsecured
      Secured
      Unsecured
      (S$'000)
      0
      (S$'000)
      25
      (S$'000)
      0
      (S$'000)
      28



      Details of any collateral

      NIL

    1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year



       

      31/03/2003
      31/03/2002
      (S$'000)
      (S$'000)
      Cash flows from operating activities:
      Profit from ordinary activities before taxation and minority interests
      4,458
      3,099
      Adjustments for:
      Amortisation of goodwill
      5
      5
      Depreciation of fixed assets
      306
      226
      Exchange realignment
      75
      (25)
      Loss on disposal of fixed assets
      133
      -
      Interest income
      (1)
      (6)
      Interest expense
      5
      13
      Share of loss of associated company
      53
      79
      Capital reserve written off
      -
      (16)
      Operating income before reinvestment in working capital
      5,034
      3,375
      (Increase)/Decrease in receivables
      (2,073)
      1,416
      (Increase)/Decrease in inventories
      (354)
      953
      (Decrease) in payables
      (1,467)
      (1,900)
      Cash generated from operations
      1,140
      3,844
      Income taxes paid
      (843)
      (1,212)
      Net cash generated from operating activities
      297
      2,632
      Cash flows from investing activities
      Proceeds on maturity of other financial asset
      -
      500
      Interest received
      1
      6
      Purchase of fixed assets
      (1,469)
      (200)
      Net cash (used in)/generated from investing activities
      (1,468)
      306
      Cash flows from financing activities
      Interest paid
      (5)
      (13)
      Repayment of interest-bearing borrowings
      (2)
      (409)
      Net cash used in financing activities
      (7)
      (422)
      Net (decrease)/increase in cash and cash equivalents
      (1,178)
      2,516
      Cash and cash equivalents at beginning of the period
      8,122
      8,829
      Cash and cash equivalents at end of the period
      6,944
      11,345



       

    1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year



       

      Share Capital
      Share Premium
      Capital Reserve
      Foreign Currency Translation Reserve
      Revenue Reserve
      Total
      (S$'000)
      (S$'000)
      (S$'000)
      (S$'000)
      (S$'000)
      (S$'000)
      The Group
      Balance as at 1/1/2002
      17,200
      6,086
      16
      355
      14,263
      37,920
      Movements during the period
      -
      -
      (16)
      (34)
      -
      (50)
      Net profit for the period
      -
      -
      -
      -
      2,229
      2,229
      Balance as at 31/03/2002
      17,200
      6,086
      -
      321
      16,492
      40,099
      Balance as at 1/1/2003
      17,200
      6,086
      -
      (53)
      27,109
      50,342
      Net profit for the period
      -
      -
      -
      -
      2,922
      2,922
      Movements during the period
      -
      -
      -
      109
      -
      109
      Balance as at 31/03/2003
      17,200
      6,086
      -
      56
      30,031
      53,373
      The Company
      Balance as at 1/1/2002
      17,200
      6,086
      -
      -
      2,843
      26,129
      Net (loss) for the period
      -
      -
      -
      -
      (9)
      (9)
      Balance as at 31/03/2002
      17,200
      6,086
      -
      -
      2,834
      26,120
      Balance as at 1/1/2003
      17,200
      6,086
      -
      -
      12,057
      35,343
      Net profit for the period
      -
      -
      -
      -
      66
      66
      Balance as at 31/03/2003
      17,200
      6,086
      -
      -
      12,123
      35,409



       

    1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares or cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year


      There was no change in the Company's share capital during the period under review. As at 31 March 2003, there were unexercised options for 17,385,000 of unissued ordinary shares of the Company under the Food Empire Share Option Scheme. (31/03/2002: NIL)

    2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)


      The figures are unaudited and were not reviewed by the auditors.

    3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)


      Not Applicable

    4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied


      The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period compared with the audited financial statements as at 31 December 2002.

    5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change


      Not Applicable

    6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends



       

      Group Figures
      Group Figures
      31/03/2003
      31/03/2002
      Earnings per share
      (i) Based on existing issued share capital (cents)
      0.85
      0.65
      (ii) On a fully diluted basis (cents)
      0.83
      0.65


      Earnings per ordinary share on existing issued share capital is computed based on weighted average number of 344,000,000 ordinary shares during the period. (31/03/2002: 344,000,000)

      Earnings per ordinary share on a fully diluted basis is computed based on weighted average number of 350,734,730 ordinary shares during the period adjusted to assume conversion of all potential dilution. (31/03/2002: 344,000,000)

    7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year



       

      Group
      Group
      Company
      Company
      31/03/2003
      31/12/2002
      31/03/2003
      31/12/2002
      Net asset backing per ordinary share (cents)
      15.52
      14.63
      10.29
      10.27



       

    8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on


      Revenue for the first quarter 2003 rose 44.3% to S$29.4 million as compared to the same period last year. Stronger sales in our key market segments Russia, Eastern Europe and Central Asia contributed to the increase in revenue. Russia contributed 61.2% of the Group Revenue followed by Eastern Europe and Central Asia with 27.8%. The remaining revenue contribution came from other markets such as Western Europe, Vietnam, China and Middle East.

      Revenue from Russia for the period increased 38.0% compared to the first quarter 2002 as it benefited from the successful launch of new products and opening of new distribution channels. Revenue from Eastern Europe and Central Asia grew 82.5% during the same period due to increasing demand in the traditional line of products as a result of strong advertising and promotion programs.

      Revenue increased in both the beverage and non-beverage product segments for the period under review. Beverage product sales continued to grow largely due to stronger demand for 3-in-1 instant coffee. The beverage product category remained as our core segment, contributing 90.1% to Group Revenue.

      Profit Before Tax increased by 43.9% to S$4.5 million as compared to first quarter 2002 on the back of an increase in revenue, while Net Profit After Tax and Minority Interests grew by 31.1% to S$2.9 million.

      In terms of balance sheet, the Group increased its fixed assets and converted part of its loan to its associated company into equity in that associated company. Net Current Assets increased by S$1.7 million, mainly due to the reduction in trade payables and increase in prepayment, other deposits and other receivables.

      In terms of cash flow, the Group has invested S$1.5 million in acquiring new machineries and expanding the existing factory in Singapore.

    9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results


      The results of the Group for the period under review are consistent with the prospect statement contained in the announcement on the Full Year Financial Statements released on 25 February 2003.

    10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months


      The markets that the Group operate in continue to be competitive for the rest of this year and the Group's profitability will continue to be affected by foreign currencies fluctuations as bulk of its revenue are in US dollars. However, the Group will continue to invest in brand building through advertisements and promotions, product quality and packaging designs to gain consumer loyalty and build on its competitive strength.

    11. Dividend


      (a) Current Financial Period Reported On

      Any dividend declared for the current financial period reported on? None
      (b) Corresponding Period of the Immediately Preceding Financial Year

      Any dividend declared for the corresponding period of the immediately preceding financial year? None

      (c) Date payable

      Not Applicable


      (d) Books closure date

      Not Applicable

    12. If no dividend has been declared/recommended, a statement to that effect


      Not Applicable


PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)


       

    13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year


      Not Applicable

    14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments


      Not Applicable

    15. A breakdown of sales


      Not Applicable

    16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year


      Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

      Latest Full Year (S$'000)
      Previous Full Year (S$'000)
      Ordinary
      0
      0
      Preference
      0
      0
      Total:
      0
      0


       


       

BY ORDER OF THE BOARD

Loh Shu Chun
Company Secretary
22/05/2003