News
News Release - Food Empire Holdings Posts Record Full-year Results For Fy2001 Group Revenue Jumps 42%, Profit After Tax Surges 133%
BackFeb 27, 2002
Singapore, Feb 27, 2002 - SGX mainboard-listed Food Empire Holdings (FEH), a leading food and beverage manufacturer, has announced a sterling set of financial results for the year ended 31, December 2001. Group Turnover rose 42.4% to $84.2 million on the back of broad-based growth across all key markets while Profit After Tax registered a record 133.1% increase to nearly $11.0 million.At the operating level, Earnings Before Interest, Tax, Depreciation and Amortisation (Ebitda) registered a significant 73.4% jump to $17.0 million in 2001.
In view of the good performance, the Directors of FEH have recommended a first and final dividend of 0.5 cents per ordinary share and a special dividend of 0.25 cents per ordinary share.
Group Profit increased because of higher Turnover, a reduction in cost of raw materials, improved operational efficiencies, foreign exchange gain, tighter control over expenses and the disposal of non-contributing businesses.
Earnings per ordinary share jumped 2.3 times to 3.19 cents while Net Tangible Asset backing per ordinary share rose 35.5% to 11 cents.
Mr Tan Wang Cheow, FEH Chairman and Managing Director said: "We are very pleased that the Group has continued to do well and that business has grown in all our key markets throughout last year despite the global economic slowdown and the international concerns following the September 11 event.
"This is testimony to the strength of our brands and global distribution network and the quality of our products, which our customers have come to trust. Our most popular brand MacCoffee, for example, continues to be a strong market leader as it is among the best selling 3-in-1instant coffee in Russia, Eastern Europe and Central Asia."
The Group's performance in the second half of 2001 continued, as in previous years, to be stronger than in the first half of the year with a 51.9% increase in Turnover to $50.8 million and a 85.1% rise in Profit After Tax and Before Minority Interest to $8.1 million.
The bulk of the Group's Turnover in 2001, come from international sales with only 2% from local trading.
FEH's Group revenue for the year was boosted by the introduction of innovative new products, a higher average US dollar exchange rate, aggressive promotions and stronger sales volume across the key markets of Russia, Eastern Europe and Central Asia.
Eastern Europe and Central Asia registered a robust 99.6% surge in sales in the year under review. Sales in Russia and in Other Markets grew 24.8% and 23.3% respectively.
Russia continued to be an important core market contributing 57.2% of Group revenue in 2001. Sales contribution from Eastern Europe and Central Asia increased significantly to 33.3% in 2001 from 23.7% in the previous financial year. Sales from Other Markets contributed 9.5% of Group revenue.
Last year, coffee-based products contributed 91.6% of FEH's total revenue. The balance 8.4% came from various sources including sales of non-coffee beverages (such as instant tea, cereal and hot chocolate), confectionery, frozen finger food and the wholesale and trading of frozen seafood.
Mr Tan said: "It is encouraging that our Group sales improved not only across the key markets but also for most of the product categories. This has much to do with the hard work of our staff as well as our company's belief in being innovative and enterprising from the way we create products to the way we market them."
Last year, FEH introduced several new products such as Klassno Cappuccino Gold
(packed in re-sealable pouches), butterscotch candy and new coffee flavours. The Group also won the Singapore Star Packaging Award in 2001 for three products - FesAroma Instant Flavoured Coffee, Klassno Finger Food and Cosenza Cappuccino.
FEH also ventured into a new wholesale business during the year under review when it started importing and selling frozen seafood in Singapore and overseas.
Commenting on plans for the current year, Mr Tan said: "We will work at growing market share in our key markets by embarking on intensive brand equity programmes and expanding our distributor network. At the same time, new products will be introduced to existing sales channels.
"We are also exploring new potential markets to expand our global reach. Besides developing the core beverage business, we will also endeavour to aggressively grow the revenue base of three relatively new businesses - frozen processed food, confectionery and the wholesale of frozen seafood."
Barring unforeseen circumstances, the Board of Directors expect the Group's results for the current year to be comparable to the year 2001.
About Food Empire Holdings
Listed on the main board of the Singapore Exchange, Food Empire Holdings is a leading food and beverage company that manufactures and market instant beverage products, frozen finger food and confectionery.
Food Empire Holdings' products are exported to over 30 countries in markets such as Russia, Eastern Europe, Central Asia, China, Indochina, Australia and the US. The Group has 10 offices (representative and liaison) in 9 countries including the UK, Russia, Ukraine, Poland, UAE, Turkey, China and Vietnam. It also has a frozen seafood wholesale business whereby the seafood is sold in Singapore and overseas.
The Group's core products include a wide variety of regular and flavoured coffee mixes and cappuccinos, instant chocolate, instant breakfast cereal and flavoured fruit teas. Enhancing the variety are coffee and butterscotch candies and a delectable assortment of frozen Asian finger food made with no MSG, preservatives and colouring.
Food Empire Holdings has more than 40 types of products under its own brands that include MacCoffee, Klassno, Temasek Royal, Express, FesAroma, Caf? Veneto, Cosenza, B?same, OrienBites and MacCandy.
Issued For And On Behalf of Food Empire Holdings By:
The Blue Edge Pte Ltd
(Business communications consultancy)
bizmail@theblueedge.com
For more information please call:
Ms Jenny Lam
Director, The Blue Edge
Tel: 65-7383845
HP: 65-97696889
