Food Empire Holdings Limited (F03) AI Stock Analysis

• Market Cap: S$1.00B
• Dividend Yield: 3.24%
• Average Volume (3M): 570.43K
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.69
• Revenue Growth: 11.26%
• EPS Growth: -7.30%
• Country: SG
• Employees: 4,450
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): N/A
• Shares Outstanding: 550,143,000
• 10 Day Avg. Volume: 743,430
• 30 Day Avg. Volume: 570,426
• PEG Ratio: 0.02
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.30
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: 0.59
• 1Y Price Target: S$2.13
• Price Target Upside: 17.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: S$2.00 ▲(9.89%Upside)

Food Empire Holdings Limited benefits from strong technical indicators and reasonable valuation, contributing positively to its stock score. However, challenges in profitability margins and cash flow efficiency slightly offset these strengths. The stock's reasonable valuation and dividend yield are appealing to investors seeking growth and income.

Positive Factors

Dividend

A higher final dividend has been proposed, translating to a higher-than-expected yield of 7.4%.

Earnings

Food Empire Holdings reported a 1Q25 revenue of US$137m, up 3% qoq and 16% yoy, coming in above expectations.

Expansion Strategy

The construction of its coffee-mix manufacturing facility in Kazakhstan is expected to boost the Group’s total coffee-mix production capacity by approximately 15%.

Negative Factors

Core Net Margin

The core net margin fell by 3 percentage points due to record-high coffee prices and increased sales, marketing, and legal expenses.

Cost Pressures

Margins are likely to take a hit from currency devaluation and rising coffee prices.

Currency Risk

Key downside risks include an escalation in the Russia-Ukraine conflict affecting its Russian operations and the ruble’s depreciation vs. the US$, leading to lower revenue in US$ terms.

Food Empire Holdings Limited Business Overview & Revenue Model

Company Description

Food Empire Holdings Limited (F03) is a global food and beverage company headquartered in Singapore. The company is primarily engaged in the manufacturing and marketing of instant beverage products, frozen convenience food, confectionery, and snack food. Its core products include instant coffee, instant tea, and instant cereal drinks, which are distributed across Asia, the Middle East, Eastern Europe, and other regions. Food Empire's brands, such as MacCoffee, Petrovskaya Sloboda, and Klassno, are well-known in their respective markets.

How the Company Makes Money

Food Empire Holdings Limited generates revenue through the sale of its food and beverage products across various international markets. The company's primary revenue streams include sales from its instant beverage products like coffee, tea, and cereal drinks. These products are distributed through a network of distributors, retailers, and direct sales channels. The company benefits from strategic partnerships and a robust distribution network that enhances its market reach and accessibility. Additionally, Food Empire invests in marketing and brand-building activities to strengthen customer loyalty and drive sales growth. The company's diverse product portfolio and geographic presence help mitigate risks associated with market fluctuations in specific regions.

Food Empire Holdings Limited Financial Statement Overview

Summary

Food Empire Holdings Limited shows strong revenue growth and a solid balance sheet. However, there are pressures on profitability margins and cash flow conversion that need addressing.

Income Statement

Food Empire Holdings Limited has demonstrated solid revenue growth, with a consistent increase from $272.97M in 2020 to $476.35M in 2024. The gross profit margin has remained stable, reflecting effective cost management. However, the net profit margin has slightly declined from 13.38% in 2023 to 11.02% in 2024, indicating rising expenses or competitive pressures. The EBIT and EBITDA margins show a slight decrease, suggesting a need for tighter operational controls.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio and a healthy equity ratio of 63.85% in 2024. Stockholders' equity has grown steadily, reflecting retained earnings. The low debt levels relative to equity highlight conservative financial management. However, the decline in return on equity from 19.12% in 2023 to 17.88% in 2024 indicates a reduced efficiency in generating profits from equity.

Cash Flow

Operating cash flow remains positive, though it has decreased significantly from $50.58M in 2023 to $25.52M in 2024, which could impact liquidity if not managed. The free cash flow is positive but substantially lower than previous years, indicating increased capital expenditures or other cash outflows. The operating cash flow to net income ratio has declined, suggesting that the conversion of profits into cash is less efficient.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	682.20M	476.35M	425.71M	398.36M	320.07M	272.97M
Gross Profit	210.36M	144.39M	141.45M	118.84M	93.66M	104.65M
EBITDA	85.59M	81.11M	79.30M	61.34M	34.00M	40.12M
Net Income	69.00M	52.53M	56.51M	60.10M	19.50M	26.79M
Balance Sheet
Total Assets	396.42M	460.08M	402.90M	381.50M	340.04M	312.64M
Cash, Cash Equivalents and Short-Term Investments	76.50M	130.85M	131.94M	125.60M	60.56M	69.04M
Total Debt	42.55M	82.85M	41.10M	44.62M	53.32M	58.13M
Total Liabilities	116.81M	163.99M	108.41M	105.90M	113.48M	95.68M
Stockholders Equity	277.67M	293.82M	295.64M	276.70M	227.72M	218.02M
Cash Flow
Free Cash Flow	30.18M	1.09M	38.06M	58.64M	8.02M	21.34M
Operating Cash Flow	56.99M	25.52M	50.58M	72.83M	14.67M	33.35M
Investing Cash Flow	-3.90M	-18.34M	-12.37M	18.98M	-5.80M	-11.08M
Financing Cash Flow	-67.39M	-5.74M	-31.54M	-26.22M	-17.01M	-7.92M

Food Empire Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:F03, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.81, above the 50-day MA of 1.69, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 53.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:F03.

Food Empire Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
F03	79 Outperform	S$1.00B	13.87	17.74%	3.24%	11.26%	-7.30%
5JS	73 Outperform	S$446.69M	4.73	7.94%	4.02%	-4.59%	74.87%
P34	73 Outperform	$458.37M	10.11	12.79%	4.19%	-7.55%	-26.87%
Q01	71 Outperform	S$523.49M	15.09	7.04%	5.49%	1.20%	26.15%
Sector *	66 Neutral	£10.36B	6.00	4.94%	3.15%	-0.88%	2.57%
MV4	66 Neutral	€397.68M	7.66	4.76%	5.89%	15.23%	-4.95%

Food Empire Holdings Limited Corporate Events

Food Empire Amends Note Terms to Stabilize Earnings

Food Empire Holdings Limited has entered into a second supplemental agreement to amend the terms of its 5.5% redeemable exchangeable notes issuance, aiming to reclassify the notes under a ‘fixed-for-fixed’ accounting classification. This change is intended to align the accounting treatment with the economic substance of the notes, reducing earnings volatility and better representing the company’s operational and financial performance. An independent financial adviser confirmed that these amendments do not confer any advantage to the note holders.

The most recent analyst rating on (SG:F03) stock is a Buy with a S$1.20 price target. To see the full list of analyst forecasts on Food Empire Holdings Limited stock, see the SG:F03 Stock Forecast page.

Food Empire Joins 2025 Fortune Southeast Asia 500 List

Food Empire Holdings Limited has been included in the 2025 Fortune Southeast Asia 500 list, marking its first appearance among the region’s largest companies by revenue. This inclusion highlights the company’s strategic growth in Southeast Asia, supported by a robust expansion pipeline including new production facilities in Kazakhstan and Vietnam, which are expected to enhance its operational capabilities and market presence.

The most recent analyst rating on (SG:F03) stock is a Buy with a S$1.20 price target. To see the full list of analyst forecasts on Food Empire Holdings Limited stock, see the SG:F03 Stock Forecast page.

Food Empire Transfers Treasury Shares for Employee Incentives

Food Empire Holdings Limited has announced the transfer of 60,000 treasury shares as part of its Employees’ Share Option Schemes. This transfer slightly reduces the company’s treasury shares, impacting the percentage of treasury shares against total outstanding ordinary shares, which decreased from 4.162% to 4.150%. This move reflects the company’s ongoing commitment to incentivize its employees, potentially enhancing employee engagement and aligning their interests with those of shareholders.

The most recent analyst rating on (SG:F03) stock is a Buy with a S$1.95 price target. To see the full list of analyst forecasts on Food Empire Holdings Limited stock, see the SG:F03 Stock Forecast page.

Food Empire Holdings Limited Conducts 2025 AGM with Business Updates

Food Empire Holdings Limited held its 2025 Annual General Meeting at Four Points by Sheraton Singapore, where the Group CEO presented a business update and financial performance. The meeting included electronic polling for resolutions, with the Chairman acting as a proxy for shareholders, indicating a structured approach to shareholder engagement.

The most recent analyst rating on (SG:F03) stock is a Buy with a S$1.98 price target. To see the full list of analyst forecasts on Food Empire Holdings Limited stock, see the SG:F03 Stock Forecast page.

Food Empire Approves Share Buyback Mandate at 2025 EGM

Food Empire Holdings Limited held its 2025 Extraordinary General Meeting, where the main agenda was the renewal of the share buyback mandate. The resolution, which allows the company to repurchase its shares, was proposed and seconded during the meeting, with voting conducted electronically. This move is expected to impact the company’s capital management strategy and potentially influence shareholder value.

The most recent analyst rating on (SG:F03) stock is a Buy with a S$1.98 price target. To see the full list of analyst forecasts on Food Empire Holdings Limited stock, see the SG:F03 Stock Forecast page.

Food Empire Reports Strong Start to FY2025 with 16.3% Revenue Growth

Food Empire Holdings Limited announced a strong start to FY2025 with a 16.3% increase in revenue, reaching US$136.6 million in the first quarter. The growth was driven by a significant surge in sales from Vietnam and a dynamic pricing strategy to mitigate inflationary pressures and rising costs. The company’s Asia-centric strategy and regional investments are expected to sustain its positive outlook, with minimal exposure to the US market.

The most recent analyst rating on (SG:F03) stock is a Buy with a S$1.20 price target. To see the full list of analyst forecasts on Food Empire Holdings Limited stock, see the SG:F03 Stock Forecast page.

Food Empire Transfers Treasury Shares for Employee Incentives

Food Empire Holdings Limited has announced the transfer of 210,000 treasury shares as part of its Employees’ Share Option Schemes. This transfer, valued at S$188,463.78, slightly reduces the percentage of treasury shares against the total number of ordinary shares outstanding, reflecting the company’s ongoing commitment to employee incentives and potentially impacting shareholder value.

Food Empire Transfers Over 1 Million Treasury Shares

Food Empire Holdings Limited has announced the transfer of 1,027,326 treasury shares as part of its Performance Share Plan 2022. This transfer reduces the company’s treasury shares from 23,218,200 to 22,190,874, slightly decreasing the percentage of treasury shares against the total number of ordinary shares outstanding. The value of the transferred shares is S$921,970.21, reflecting the company’s ongoing efforts to manage its share capital efficiently.