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First Quarter Financial Statement And Dividend Announcement For The Period Ended 31/03/2004

HALF-YEAR AND FULL YEAR RESULTS

corresponding period of the immediately preceding financial year.

	Group (S$'000)	Group (S$'000)	% Increase/ (Decrease)
	Jan-Mar 2004	Jan-Mar 2003
Revenue	37,025	29,387	26.0
Costs and expenses
Changes in inventories of finished goods	(1,189)	341	) 26.6
Raw materials and consumables used	(16,805)	(14,557)	)
Staff costs	(3,195)	(2,903)	10.1
Depreciation and amortisation expenses	(371)	(311)	19.3
Foreign exchange loss	(752)	(74)	NM
Other operating expenses (Note 1)	(8,887)	(7,503)	18.4
Other income	76	136	(44.1)
Total costs and expenses	(31,123)	(24,871)	25.1
Profit from operating activities	5,902	4,516	30.7
Finance costs	-	(5)	NM
Share of loss of an associated company	(36)	(53)	(32.1)
Profit from ordinary activities before taxation and minority interests	5,866	4,458	31.6
Taxation	(1,341)	(1,025)	30.8
Minority interests, net of taxation	(587)	(511)	14.9
Net profit for the period	3,938	2,922	34.8



NM- Not meaningful

Note 1: Included in other operating expenses is a provision for doubtful debts of S$700,000 (2003:S$377,000)

as at the end of the immediately preceding financial year.

	Group	Group	Company	Company
	31/03/2004	31/12/2003	31/03/2004	31/12/2003
	(S$'000)	(S$'000)	(S$'000)	(S$'000)
Assets Less Liabilities
Non-Current Assets
Fixed assets	13,206	13,459	-	-
Investments in subsidiary companies	-	-	12,519	12,519
Investment in an associated company	1,106	1,142	1,082	1,082
Deferred tax assets	652	922	-	-
Intangible asset	34	39	-	-
	14,998	15,562	13,601	13,601
Current Assets
Cash and bank balances	17,328	11,825	415	30
Trade receivables	20,077	20,591	-	-
Prepayments, other deposits and other receivables	2,847	2,370	12	16
Amounts due from subsidiary companies (non-trade)	-	-	18,104	18,118
Amount due from an associated company (non-trade)	309	188	309	188
Inventories	22,064	23,633	-	-
	62,625	58,607	18,840	18,352
Current Liabilities
Trade payables	(7,541)	(7,920)	-	-
Other payables	(2,521)	(3,379)	(379)	(234)
Amount due to an associated company (trade)	-	(37)	-	-
Provision for taxation	(2,448)	(2,045)	-	-
	(12,510)	(13,381)	(379)	(234)
Net Current Assets	50,115	45,226	18,461	18,118
Non-Current Liabilities
Deferred tax liabilities	(506)	(509)	-	-
	(506)	(509)	-	-
Net Assets	64,607	60,279	32,062	31,719
Equity
Share capital	17,305	17,200	17,305	17,200
Reserves	43,874	39,802	14,757	14,519
	61,179	57,002	32,062	31,719
Minority interests	3,428	3,277	-	-
	64,607	60,279	32,062	31,719

Amount repayable in one year or less, or on demand



As at 31/03/2004

As at 31/12/2003

Secured	Unsecured	Secured	Unsecured
(S$'000) 0	S$'000 0	(S$'000) 0	(S$'000) 0



Amount repayable after one year



As at 31/03/2004

As at 31/12/2003

Secured	Unsecured	Secured	Unsecured
(S$'000) 0	(S$'000) 0	(S$'000) 0	(S$'000) 0



Details of any collateral

NIL

the corresponding period of the immediately preceding financial year.

	31/03/2004	31/03/2003
	(S$'000)	(S$'000)
Cash flows from operating activities:
Profit from ordinary activities before taxation and minority interests	5,866	4,458
Adjustments for:
Amortisation of goodwill	5	5
Depreciation of fixed assets	366	306
Exchange realignment	(98)	75
(Gain)/ loss on disposal of fixed assets	(9)	133
Interest income	(1)	(1)
Interest expenses	-	5
Share of loss of an associated company	36	53
Operating income before reinvestment in working capital	6,165	5,034
Decrease/(increase) in receivables	37	(2,073)
Decrease/(increase) in inventories	1,569	(354)
Decrease in payables	(1,274)	(1,467)
Cash generated from operations	6,497	1,140
Income taxes paid	(668)	(843)
Net cash generated from operating activities	5,829	297
Cash flows from investing activities:
Interest income received	1	1
Purchase of fixed assets	(161)	(1,469)
Proceeds from sale of fixed assets	9	-
Net cash used in investing activities	(151)	(1,468)
Cash flows from financing activities:
Interest expenses paid	-	(5)
Dividends paid to minority shareholder of subsidiary company	(407)	-
Repayment of interest-bearing borrowings	-	(2)
Loan to an associated company	(126)	-
Proceeds from issuance of shares	358	-
Net cash used in financing activities	(175)	(7)
Net increase/(decrease) in cash and cash equivalents	5,503	(1,178)
Cash and cash equivalents at beginning of the period	11,825	8,122
Cash and cash equivalents at end of the period	17,328	6,944

(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	Foreign Currency Translation Reserve	Revenue Reserve	Total
	(S$'000)	(S$'000)	(S$'000)	(S$'000)	(S$'000)
The Group
Balance as at 01/01/2003	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
Balance as at 01/01/2004	17,200	6,086	(202)	33,918	57,002
Net profit for the period	-	-	-	3,938	3,938
Movements during the period	-	-	(119)	-	(119)
Issuance of ordinary shares	105	253	-	-	358
Balance as at 31/03/2004	17,305	6,339	(321)	37,856	61,179
The Company
Balance as at 01/01/2003	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
Balance as at 01/01/2004	17,200	6,086	-	8,433	31,719
Net (loss) for the period	-	-	-	(15)	(15)
Issuance of ordinary shares	105	253	-	-	358
Balance as at 31/03/2004	17,305	6,339	-	8,418	32,062

bonus issue, share buy-backs, exercise of share options or warrants, conversion of
other issues of equity securities, issue of shares for 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.

The issued and paid-up capital of the Company increased from S$17,200,000 as at 01 January 2004 to S$17,305,500 as at 31 March 2004. The increase was due to new ordinary shares of S$0.05 each allotted and issued pursuant to the exercise of options granted under the Food Empire Holdings Limited Share Option Scheme (the "Option Scheme").

As at 31 March 2004, options to subscribe for a total of 15,255,000 ordinary shares were outstanding under the Option Scheme. As at 31 March 2003, options to subscribe for a total of 17,385,000 ordinary shares were outstanding under the Option Scheme.



	Balance as at 01-Jan-04	No of options granted during the period	No of options exercised during the period	Balance as at 31-Mar-04	Exercise price per share	Exercise Period
2002 Options	16,065,000	-	(2,110,000)	13,955,000	0.17	14 March 2004 to 13 March 2012
2002 Options	800,000	-	-	800,000	0.17	14 March 2004 to 13 March 2007
2003 Options	500,000	-	-	500,000	0.27	04 June 2005 to 13 March 2012
	17,365,000	-	(2,110,000)	15,255,000

which auditing standard or practice.

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

any qualifications or emphasis of a matter).

Not applicable.

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 2003.

including any required by an accounting standard, what has changed, as well as
the reasons for, and the effect of, the change.

Not applicable.

on and the corresponding period of the immediately preceding financial year,
after deducting any provision for preference dividends.

	Group Figures	Group Figures
	31/03/2004	31/03/2003
Earnings per share
(i) Based on existing issued share capital (cents)	1.14	0.85
(ii) On a fully diluted basis (cents)	1.12	0.83


Earnings per ordinary share on existing issued share capital is computed based on weighted average number of 344,297,582 ordinary shares during the year.(31/03/2003:344,000,000)

Earnings per ordinary share on a fully diluted basis is computed based on weighted average number of 352,734,997 ordinary shares during the year adjusted to assume conversion of all potential dilution.(31/03/2003:350,734,730)

capital of the issuer at the end of the:-

(a) current financial period reported on; and
(b) immediately preceding financial year.

	Group	Group	Company	Company
	31/03/2004	31/12/2003	31/03/2004	31/12/2003
Net asset value per ordinary share (cents)	17.68	16.57	9.26	9.22

understanding of the group's business. It must include a discussion of the
following:-

(a) 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; and

(b) any material factors that affected the cash flow, working capital, assets or
liabilities of the group during the current financial period reported on.

First quarter 2004 ('1Q04') versus first quarter 2003 ('1Q03')

For the quarter ended 31 March 2004, Group Revenue recorded a growth of 26.0% to S$37.0 million and Group Net Profit after Tax grew 34.8% to S$3.9 million as a result of stronger sales in the key markets of Russia, Eastern Europe & Central Asia.

Revenue

Table: Geographical Analysis



	1Q04	1Q03	% increase/ (decrease)
	(S$'000)	(S$'000)
Russia	22,227	17,999	23.5
Eastern Europe & Central Asia	12,228	8,176	49.6
Others	2,570	3,212	(20.0)
Total	37,025	29,387	26.0


Revenue from Russia increased 23.5% to S$22.2 million while Eastern Europe & Central Asia sales rose 49.6% to S$12.2 million in 1Q04 as compared to 1Q03. The improvement in these core markets was due to strategic reinforcements of the Group's overseas operations and continued investments in building brand awareness and distribution network expansion.

Revenue from Other Markets declined 20.0% to S$2.6 million due to the cessation of frozen seafood trading under a subsidiary.

Russia contributed 60.0% to Group Revenue, followed by Eastern Europe & Central Asia with 33.0%. Revenue from Other Markets made up the balance 7.0%.

Table: Product Analysis



	1Q04	1Q03	% increase/ (decrease)
	(S$'000)	(S$'000)
Beverages	33,870	26,479	27.9
Non-Beverages	3,155	2,908	8.5
Total	37,025	29,387	26.0

Revenue from the Beverages segment grew 27.9% to S$33.9 million due mainly to higher demand for coffee-based products. The Non-Beverages category was boosted by broad-based sales growth that led to revenue improving 8.5% to $3.2 million.

Beverages segment remained the core business with a 91.5% contribution to Group Revenue.

Net Profit After Tax

Net Profit After Tax ('PAT') increased 34.8% to S$3.9 million on the back of higher revenue and improved operating margins.

Foreign exchange loss for 1Q04 was S$0.8 million versus a loss of S$0.1 million for 1Q03 with the weakening of the US$.

Cash Flow Statement

Following higher operating profits and reduced inventory levels, the Group's net cash position increased by S$5.5 million to S$17.3 million in 1Q04. The Group received proceeds of S$0.4 million from the exercise of share options under the Food Empire Holdings Limited Share Option Scheme.

shareholders, any variance between it and the actual results.

Not applicable.

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 Group expects market conditions to remain competitive and foreign currency fluctuations will remain a key consideration. The Group will continue to invest in brand building and distribution network expansion to improve its market share.

(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.

Not applicable.

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

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.

contributions to turnover and earnings by the business or geographical segments.

Not applicable.

Not applicable.

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 ()	Previous Full Year ()
Ordinary	0	0
Preference	0	0
Total:	0	0