Food Empire posts 15% drop in 1Q profit after tax to $4.2m

Mainboard-listed Food Empire Holdings, the manufacturer and distributor of instant coffee, chocolate drinks and flavoured fruit teas, says profit after tax for the first quarter of 2011 (1Q2011) was US$3.4 million ($4.2 million), a decrease of 15% compared to the same quarter last year due to the writeback of tax provision in 1Q2010. In fact, Food Empire’s profit before tax for Q1 2011 was up 4.1% to US$3.7 million.

Group revenue increased by 31.3% to US$50.8 million from US$38.7 million, marking five consecutive quarters of double-digit year-on-year revenue growth. The strong sales growth was due to several factors including improved economic conditions, currency stability, growing consumer confidence and successful brand building activities

Food Empire says revenue from the group’s largest market, Russia, was up by a healthy 43.4%, boosted by the expansion of its distribution channels into new areas of the country, as well as improving consumer sentiment. The group also grew its sales in Ukraine by 5.2% and in Kazakhstan by 31.2%. Its other markets are also showing steady sales growth, especially in the Middle East.