Food Empire    Last:2.47    -0.04

Food Empire

awaiting for the 2nd quarter to be out in July.

 

CHIONG LA

 

Good buying opportunity.

 

It's your call bro. I can't keep buying. I'm under surveillance by my compliance. =(

think2profit      ( Date: 31-May-2016 09:50) Posted: Buy in dip? Feverfire      ( Date: 31-May-2016 08:22) Posted: Relax bro. 40 cents is easily attainable. I'm looking at a tp of 52 cents.

 

Buy in dip?

Feverfire      ( Date: 31-May-2016 08:22) Posted: Relax bro. 40 cents is easily attainable. I'm looking at a tp of 52 cents. Secret_Squirrel      ( Date: 31-May-2016 00:24) Posted: Today closing at 37.5 cents up 4 cents. Highest at 38 cents.  Hopefully can chiong some more

 

Relax bro. 40 cents is easily attainable. I'm looking at a tp of 52 cents.

Secret_Squirrel      ( Date: 31-May-2016 00:24) Posted: Today closing at 37.5 cents up 4 cents. Highest at 38 cents.  Hopefully can chiong some more Feverfire      ( Date: 28-May-2016 19:40) Posted: Why not. CF is increasing compared to past year. At least 40 cents in near term.

 

Today closing at 37.5 cents up 4 cents. Highest at 38 cents. 

Hopefully can chiong some more

Feverfire      ( Date: 28-May-2016 19:40) Posted: Why not. CF is increasing compared to past year. At least 40 cents in near term.

 

Why not. CF is increasing compared to past year. At least 40 cents in near term.

 

Up 3 cents close ar 33.5 cents. Highest at 35 cents   yesterday.

Is this price sustainable?

 

Secret_Squirrel      ( Date: 24-May-2016 21:06) Posted: Still 31 cents after 1 week.  yuncong      ( Date: 17-May-2016 20:43) Posted: Price currently at .31 Day one of white candle Close the highest of all May continue to march higher Can watchlist it

 

Still 31 cents after 1 week. 

yuncong      ( Date: 17-May-2016 20:43) Posted: Price currently at .31 Day one of white candle Close the highest of all May continue to march higher Can watchlist it

 

The major risk is fx. But looks like short term usd is dovish. So upcoming revenues will be good.

Vested.

 

Price currently at .31
Day one of white candle
Close the highest of all
May continue to march higher
Can watchlist it

 

commentary at the date of the announcement of the significant trends and 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.


Global oil prices continue to remain volatile amid concerns of global oversupply and the weak global
economic outlook. As a result, currencies of the Group&rsquo s key markets such as Russia and Ukraine
remain vulnerable and may affect the Group&rsquo s financial performance in the foreseeable future.
On the other hand, the Group has achieved meaningful geographical diversification with its
breakthrough in Indochina and will continue to nurture and develop these new markets. Efforts are
also underway to push for an expansion of its product portfolio, particularly in the coffee and beverage
capsule business through the production, marketing and distribution of its proprietary &ldquo Coffee One&rdquo and
Nespresso compatible systems.


The Group will continue to bring up the utilisation levels of all its upstream projects, which include the
non-dairy creamer plant, snack factory, the beverage manufacturing facility in Malaysia and the instant
coffee plant in India. It will also intensify marketing efforts in FY2016 to achieve better operational and
financial performance.


As announced on 18 March 2016, as part of the Group&rsquo s growth plans to move into the downstream
business, it has successfully taken a minority stake in Caffebene Co., Ltd. (&ldquo Caffebene&rdquo ), one of South
Korea&rsquo s largest coffee house chains via the subscription of new shares by its 51% owned subsidiary,
Hallyu Ventures Pte Ltd. The Group is working with Caffebene to explore commercial and strategic
opportunities.

 

Balance Sheet & Cashflow
Inventories increased from US$40.1 million at 31 December 2015 to US$45.4 million as at 31 March
2016 due to translation gain of inventories held in currencies other than the US dollar, slow down of
sales in the CIS countries and a change in business processes from distributor importer to direct import
model for our operations in Kazakhstan.


Investments in associates increased from US$7.6 million as at 31 December 2015 to US$15.9 million
as at 31 March 2016 due to the Group&rsquo s investment in Caffebene Co., Ltd.


The Group&rsquo s borrowings were US$44.1 million as at 31 March 2016, compared to US$39.5 million as at
31 December 2015. This increase was largely attributed to additional trade loans taken up for the
Group&rsquo s India operations as well as for the Group&rsquo s investment in Caffebene Co., Ltd.
The Group&rsquo s net operating cash flow position improved, with a net operating cash inflow of US$0.6
million in 1Q2016, compared to a net operating cash outflow of US$3.9 million in 1Q2015. The Group&rsquo s
cash and cash equivalents was US$24.1 million as at 31 March 2016, compared to US$27.5 million as
at 31 December 2015.


The Group&rsquo s net assets as at 31 March 2016 were US$143.1 million. The net asset value per ordinary
share (excluding non-controlling interests) as at 31 March 2016 was 26.77 US cents as compared to
25.78 US cents as at 31 December 2015.

 

Profitability

For 1Q2016, the Group recorded a net profit after tax of US$3.9 million compared to a net loss after tax

of US$4.5 million in 1Q2015 mainly due to more favourable exchange rates coupled with higher selling
prices.


For 1Q2016, selling and distribution expenses decreased by US$1.0 million from US$8.7 million in
1Q2015 to US$7.7 million. The decrease was mainly attributed to lower expenses for advertising and
promotion activities.


In 1Q2016, the Ukrainian Hryvnia weakened from 23.9 Hryvnia per US dollar on 31 December 2015 to
26.2 Hryvnia per US dollar on 31 March 2016. Over the same period, the Russian Ruble strengthened
to 67.6 Ruble per US dollar on 31 March 2016, compared with 72.9 Ruble per US dollar on 31
December 2015. As the Group is economically exposed to both markets, it was affected by the
revaluation of its outstanding trade receivables denominated in currencies other than the US dollar.

 

Food Empire announced its 1Q 2016 results.   Looks like it have turned around.  

Foreign exchange gain US$2.746m for 1Q 16

Foreign exchange loss US$7,991m for 1Q 15 

Net asset value per ordinary share (USD cents) @  31-Mar-16 :  26.77 

  Profit/(loss) per share Based on existing issued share capital (USD cents) for 1Q 16 :  0.75 

 

Revenue for the first quarter ended 31 March 2016 (&ldquo 1Q2016&rdquo ) was US$50.5 million, a year-on-year (&ldquo yoy&rdquo ) decline of 1.8% compared with the US$51.4 million revenue recorded in 1Q2015.  

 

http://foodempire.listedcompany.com/newsroom/20160511_190331_F03_IZ2U5QRI8CMOJOH4.1.pdf

 

Food Empire has not issued any div for last two years and it will take a while to turn caffee bene around. may see a few quarters of loss and another year without div. Don' t see short term  catalyst to drive price up.

 

Other points:-

NAV @ 25.78 cents (US) which approx 34.8 cents (SG)

Basic & diluted EPS at 0.04 cents (US) which approx 0.054 cents (SG)

Carrying value of investment property @ US$15.275m

Fair value of investment property @ US$25.544m

Surplus @ US$10.269m   which translate to about US$0.019275/share (approx S$0.026/share)

Also the land is freehold.

 

Was going through the 2015 Annual Report and noted the followings:-

Business Expansion & Geographical Diversification

Food Empire have made considerable results expanding and growing in South East Asia particularly Indo China.   Hope there are further growth in these markets and at a much faster pace so as to reduce the dependency on Russia and Ukraine which is currently the top 2 markets for Food Empire. 

Also, noted the Salim Group owns 24.79% equity interests in Food Empire and the Salim Group is a big conglomerate in Indonesia which include food business.   Will Food Empire be able to explore ways to penetrate the Indonesia market with the help of Salim Group and if there are already plans to do so?   This will be a huge boost to Food Empire.

Hedging (Natural Hedge)

I noted in 2015 annual report page 31 which it is stated the group relied on natural hedging to mitigate forex risks. 

Any kind soul can help elaborate what is natural hedging and explain how is this performed?

Directors' Statement (2015 Annual Report) vs Directors' Report & Directors' Statement (2014 Annual Report)

I noted in the 2014 Annual Report Financials Section, there are the Directors' Report and Directors' Statement  while in the 2015 Annual Report Financials Section, there is only the Directors' Statement.   Any kind soul knows why the change and the significance of the change and if all required information is now streamlined into 1 report?

 

On the group basis, it is a loss but there is a small profits when apportioned between shareholders of the company and non controlling interests

Qanghoo      ( Date: 10-Apr-2016 08:26) Posted: I thought black liao ... eps close to 0.6c last FY? fatpudge      ( Date: 09-Apr-2016 19:34) Posted: Loss is narrowing, hopefully 2016 is the year of turnaround