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SINGAPORE - 12 March 2001 - Mainboard-listed Food Empire Holdings Limited, a food and beverage manufacturer and marketer of instant beverage products, has turned in significantly improved full-year profits, in line with the forecast made during interim results announcement in August 2000.
For the 12 months ended 31 December 2000, the Group reported a 27.2% increase in profit after tax to $4.7 million on a robust 50.1% growth in turnover to S$59.2 million. This compares favorably with a profit after tax of S$3.7 million on a turnover of S$39.4 million the previous fiscal year.
Based on the latest full-year results, earnings per share based on the enlarged share capital of 344 million shares was 1.37 Singapore cents compared to 1.43 cents based on the pre-invitation share capital of 258 million shares previously.
Net tangible asset backing per share, however, increased significantly to 7.74 cents from 4.97 cents.
Food Empire is proposing a first and final dividend of 10% gross per share, which if approved, will be paid to shareholders.
Contributing to the nearly $20 million increase in turnover during the year was the better performance of the Group's key markets in Russia, Eastern Europe and Central Asia due to the improved and stable economies in these countries. Intensive advertitsing and promotional activities, coupled with a wider range of brands and products, have also contributed to the higher turnover.
For fiscal year 2000, Food Empire's coffee products accounted for nearly $51 million, or 86.1%, in turnover. In terms of geographical markets, Russia was the highest contributor, raking in $38.6 million (65.3%) in turnover, followed by Eastern Europe and Central Asia which collectively contributed $14 million (23.7%). The remaining $6.5 million came from Indochina, the Middle East, North America, Singapore and other markets.
Besides the improvement in turnover, the Group was also able to enjoy better margins due to improved operational efficiency, lesser reliance on contract manufacturing, and favorable foreign exchange gains.
Commenting on the results, Food Empire's Managing Director Mr Tan Wang Cheow said: "We are very pleased with the significant improvements that our Group has made for the fiscal year just ended."
"We will continue to intensify our efforts to increase brand equity and develop more key markets in our current distribution network. We will also expand our two new business segments - namely, frozen processed food and confectionery products," he said.
"Although we are expecting to incur further expenses during the gestation period of our new businesses, such as wholesale distribution, caf? operations and an Internet startup, the financial impact on the Group's results would be minimal. As such, barring any unforeseen circumstances, we expect the Group's performance in FY2001 to be sustained," Mr Tan added.