🎯 Is Food Empire (SGX: F03) worth checking out?

Hello everyone! Today i want to share some techncial analysis with you!

Food Empire Holdings: Riding Asia’s Coffee Boom

📊 1Q25 Top-Line Surge

Revenue climbed 16.3% year-on-year to US$136.6 million, a record first-quarter haul. Management pointed to stronger demand for instant coffee in Vietnam and Kazakhstan plus selective price hikes that offset higher green-bean costs.

🌏 Southeast Asia Overtakes Russia

For the first time, Southeast Asia became the group’s largest region, contributing US$40 million (+33.8 %) and edging past Russia’s US$39.4 million. The shift reduces rouble exposure and geopolitical risk while deepening ties to fast-growing ASEAN consumption trends.

💰 Dividend Sweetener & FY24 Earnings

FY2024 normalized net profit eased 11.4 % to roughly US$50 million after forex headwinds, yet directors raised the total dividend to 8 Singapore cents (6¢ final plus 2¢ special). That equates to a dividend yield near 3.5% and a 61% payout ratio, signaling confidence in free-cash-flow durability.

🏭 Capacity-Expansion Pipeline

A freeze-dried coffee plant in Vietnam is slated to break ground by end-2025, while new snack lines in Malaysia and a coffee-mix facility in Kazakhstan will complete this year. Combined, these projects lift annual capacity by double digits and deepen vertical integration, supporting volume growth through 2028.

🔎 Analyst Upgrades & Valuation

Two major brokers recently lifted target prices to around S$2.00, highlighting the pivot toward higher-growth Asian markets, strong pricing power and rising dividends. Consensus now pegs FY25 price-to-earnings near 8×, still below the five-year average of 9×.

⚔️ Competitive Landscape Check

Beverage peer Fraser & Neave reported just 3% revenue growth to S$2.2 billion in FY24, while confectionery rival Delfi saw sales contract 6.6% to US$503 million. Against these names, Food Empire is posting faster expansion and comparable dividend yields, reflecting its niche in emerging-market coffee mixes and widening product slate.

📈 Conclusion

Food Empire’s decisive tilt toward high-growth Asian coffee markets, underpinned by new capacity and shareholder-friendly payouts, positions it as a compelling consumer-staples pick for investors seeking both dependable yield and structural growth on the SGX.

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