Financial Statement - Food Empire Holdings Limited

Listed companies must provide the information required by Appendix 7.2 of the Listing Manual.
Adequate disclosure should be given to explain any material extraordinary item either as a footnote
of the material extraordinary item or in the "Review of the performance of the group".
FOOD EMPIRE HOLDINGS LIMITED
(Co Registration No: 200001282G)
2 nd Quarter and First Half Financial Statement And Dividend Announcement for the
Period Ended 30 June 2005
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 &
Q3), HALF-YEAR AND FULL YEAR RESULTS
1(a) An income statement (for the group) together with a comparative statement for the
corresponding period of the immediately preceding financial year.
Group
(S$’000)
Apr- Jun
2005
Group
(S$’000)
Apr- Jun
2004
(Restated)*
%
Increase/
(Decrease)
Group
(S$’000)
Jan- Jun
2005
Group
(S$’000)
Jan- Jun
2004
(Restated)*
%
Increase/
(Decrease)
Revenue 39,850 34,981 13.9 82,534 72,006 14.6
Costs and expenses
Changes in inventories of (2,053) 5,672 (1,373) 4,728
finished goods
Raw materials and
(18,971) (22,875) 22.2 (41,141) (39,680) 21.6
consumables used
Staff costs (4,542) (3,363) 35.1 (9,041) (6,587) 37.3
Depreciation and amortisation (422) (386) 9.3 (861) (760) 13.3
expenses
Foreign exchange gain/(loss) 439 457 (3.9) 701 (259) NM
Other operating expenses (9,543) (10,061) (5.1) (18,452) (18,946) (2.6)
(Note 1)
Other income 272 26 NM 373 102 NM
Finance costs (23) - NM (23) - NM
Share of (losses)/profit of
associated companies
(100) 6 NM (68) (30) NM
Profit before taxation 4,907 4,457 10.1 12,649 10,574 19.6
Taxation (Note 2) (968) (1,060) (8.7) (2,982) (2,454) 21.5
Profit after taxation 3,939 3,397 16.0 9,667 8,120 19.1
Attributable to:
Shareholders of the
3,348 2,688 24.6 8,059 6,824 18.1
Company
Minority interests, net of
591 709 (16.6) 1,608 1,296 24.1
taxation
Profit after taxation 3,939 3,397 16.0 9,667 8,120 19.1
* Please refer to paragraph 4.
Note 1: Included in other operating expenses is a provision for doubtful debts (trade). Details are shown below:
Group
(S$’000)
Group
(S$’000)
Group
(S$’000)
Group
(S$’000)
Apr- Jun 2005 Apr- Jun 2004 Jan- Jun 2005 Jan- Jun 2004
Provision for doubtful debts - 230 - 930

Note 2: Included in taxation for half year ended 30 June 2005 is an underprovision of S$338,000 (2004:S$nil) for
the prior year.
NM: Not meaningful.
1(b)(i) A balance sheet (for the issuer and group), together with a comparative
statement as at the end of the immediately preceding financial year.
Group Group Company Company
30/06/2005
(S$'000)
31/12/2004
(Restated)
(S$'000)
30/06/2005
(S$'000)
31/12/2004
(Restated)
(S$'000)
Assets Less Liabilities
Non-Current Assets
Fixed assets 14,450 13,369 - -
Investments in subsidiary companies - - 12,519 12,519
Investments in associated companies 1,427 1,272 979 979
Deferred tax assets 948 1,385 - -
Intangible assets 7,738 - - -
24,563 16,026 13,498 13,498
Current Assets
Cash and bank balances 13,194 15,680 634 83
Trade receivables 30,094 27,967 - -
Prepayments,other deposits and other
4,392 4,996 711 1,147
receivables
Amounts due from subsidiary companies
(non-trade)
- - 21,655 16,168
Amounts due from associated companies (trade) 64 138 - -
Amounts due from associated companies
(non-trade)
464 890 - 439
Inventories 34,680 31,906 - -
82,888 81,577 23,000 17,837
Current Liabilities
Trade payables and accruals (13,970) (19,555) (406) -
Other payables (821) (414) (9) (314)
Amount due to a related party (trade) - (1) - -
Provision for taxation (4,380) (3,877) (9) (9)
(19,171) (23,847) (424) (323)
Net Current Assets 63,717 57,730 22,576 17,514
Non-Current Liability
Deferred tax liabilities (262) (249) - -
(262) (249) - -
Net Assets 88,018 73,507 36,074 31,012
Equity
Share capital 18,877 17,457 18,877 17,457
Reserves 65,153 51,636 17,197 13,555
84,030 69,093 36,074 31,012
Minority interests 3,988 4,414 - -
88,018 73,507 36,074 31,012

1(b)(ii)
Aggregate amount of group’s borrowings and debt securities.
Amount repayable in one year or less, or on demand
As at 30/06/2005 As at 31/12/2004
Secured Unsecured Secured Unsecured
0 0 0 0
Amount repayable after one year
As at 30/06/2005 As at 31/12/2004
Secured Unsecured Secured Unsecured
0 0 0 0
Details of any collateral
NIL
1(c) A cash flow statement (for the group), together with a comparative statement for
the corresponding period of the immediately preceding financial year.
Cash flows from operating activities:
3 mths
ended
3 mths
ended
6 mths
ended
6 mths
ended
30 June
2005
30 June
2004
30 June
2005
30 June
2004
(Restated)
(Restated)
(S$'000) (S$'000) (S$'000) (S$'000)
Profit from ordinary activities before taxation and minority
4,907 4,457 12,649 10,574
interests
Adjustments for:
Amortisation of goodwill - 5 - 10
Depreciation of fixed assets 422 381 861 750
Exchange realignment 1,082 801 1,355 360
Loss/ (gain) on disposal of fixed assets 25 - 16 (9)
Interest expense 23 - 23 -
Interest income (25) (5) (45) (6)
Share of losses/(gains) of associated companies 99 (6) 67 30
Share-based payment expenses 145 57 276 63
Operating income before reinvestment in working capital 6,678 5,690 15,202 11,772
Increase in receivables (2,123) (3,677) (1,008) (3,640)
Increase in inventories (1,914) (6,513) (2,774) (4,884)
Increase/(decrease) in payables 21 5,148 (5,454) 3,896
Cash generated from / (used in) from operations 2,662 648 5,966 7,144
Income taxes paid (1,289) (790) (2,062) (1,457)
Net cash generated from / (used in) from operating activities 1,373 (142) 3,904 5,687
Cash flows from investing activities:
Interest received 25 5 45 6
Purchase of fixed assets (896) (258) (1,679) (419)
Proceeds from sale of fixed assets 3 - 3 9

3 mths
ended
3 mths
ended
6 mths
ended
6 mths
ended
30 June
2005
30 June
2004
30 June
2005
30 June
2004
(Restated)
(Restated)
(S$'000) (S$'000) (S$'000) (S$'000)
Loan to an associated company - (141) - (267)
Investment in an associated company (162) (257) (162) (257)
Net cash used in investing activities (1,030) (651) (1,793) (928)
Cash flows from financing activities
Dividends paid to minority shareholders of subsidiary companies (105) (944) (859) (1,351)
Dividends paid to shareholders of the Company (4,225) (3,467) (4,225) (3,467)
Interest expense (23) - (23) -
Proceeds from issuance of shares 345 448 510 806
Net cash used in financing activities (4,008) (3,963) (4,597) (4,012)
Net (decrease)/ increase in cash and cash equivalents (3,665) (4,756) (2,486) 747
Cash and cash equivalents at beginning of the period 16,859 17,328 15,680 11,825
Cash and cash equivalents at end of the period 13,194 12,572 13,194 12,572
1(d)(i)
or (ii)
A statement (for the issuer and group) showing either (i) all changes in equity
changes in equity other than those arising from capitalisation issues and
distributions to shareholders, together with a comparative statement for the
corresponding period of the immediately preceding financial year.
Share
Capital
Share
Premium
Foreign
Currency
Translation
Reserve
Other
Reserve
Revenue
Reserve
Total
Minority
Interests
Total
Equity
(S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000)
The Group
Balance as at
01/01/2004
- As previously 17,200 6,086 (202) - 33,918 57,002 3,277 60,279
reported
- Changes in
- - - 14 (14) - - -
accounting policies
FRS 102
- As restated 17,200 6,086 (202) 14 33,904 57,002 3,277 60,279
Net profit for the
- - - - 4,136 4,136 587 4,723
period
Dividends paid to a - - - - - - (407) (407)
minority shareholder
of a subsidiary
company
Movements during - - (485) 6 - (479) (29) (508)
the period
Issuance of ordinary 105 253 - - - 358 - 358
shares
Balance as at 17,305 6,339 (687) 20 38,040 61,017 3,428 64,445
31/03/2004
Net profit for the
- - - - 2,688 2,688 709 3,397
period
Dividends paid to a
minority shareholder
of a subsidiary
company
- - - - - - (944) (944)

Dividends paid to
shareholders of the
Company
Movements during
the period
Issuance of ordinary
shares
Balance as at
30/06/2004
Share
Capital
Share
Premium
Foreign
Currency
Translation
Reserve
Other
Reserve
Revenue
Reserve
Total
Minority
Interests
Total
Equity
(S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000)
- - - - (3,467) (3,467) - (3,467)
- - 794 58 - 852 52 904
132 316 - - - 448 - 448
17,437 6,655 107 78 37,261 61,538 3,245 64,783
Balance as at
01/01/2005
- As previously 17,457 6,703 (529) - 45,698 69,329 4,414 73,743
reported
- Changes in
- - (1,016) 346 434 (236) - (236)
accounting policies
FRS 21 & 102
- As restated 17,457 6,703 (1,545) 346 46,132 69,093 4,414 73,507
Net profit for the
- - - - 4,711 4,711 1,017 5,728
period
Dividends paid to a
- - - - - - (754) (754)
minority shareholder
of a subsidiary
company
Movements during
- - 293 131 - 424 17 441
the period
Issuance of ordinary 49 116 - - - 165 - 165
shares
Balance as at 17,506 6,819 (1,252) 477 50,843 74,393 4,694 79,087
31/03/2005
Net profit for the
- - - - 3,348 3,348 591 3,939
period
Dividends paid to a
- - - - - - (105) (105)
minority shareholder
of a subsidiary
company
Dividends paid to
- - - - (4,225) (4,225) - (4,225)
shareholders of the
Company
Movements during
- - 1,387 145 - 1,532 - 1,532
the period
Acquisition of
- - - - - - (1,192) (1,192)
shares from minority
shareholder of a
subsidiary company
Issuance of ordinary 1,371 7,611 - - - 8,982 - 8,982
shares
Balance as at
30/06/2005
18,877 14,430 135 622 49,966 84,030 3,988 88,018

Share
Capital
Share
Premium
Foreign
Currency
Translation
Reserve
Other
Reserve
Revenue
Reserve
Total
(S$'000) (S$'000) (S$'000) (S$'000) (S$'000) (S$'000)
The Company
Balance as at
01/01/2004
- As previously 17,200 6,086 - - 8,433 31,719
reported
- Changes in
- - - 14 (14) -
accounting policies
FRS 102
- As restated 17,200 6,086 - 14 8,419 31,719
Net (loss) for the
- - - - (21) (21)
period
Movements during - - - 6 - 6
the period
Issuance of
105 253 - - - 358
ordinary shares
Balance as at 17,305 6,339 - 20 8,398 32,062
31/03/2004
Net (loss) for the
- - - - (47) (47)
period
Movements during - - - 58 - 58
the period
Issuance of
132 316 - - - 448
ordinary shares
Dividends paid to
- - - - (3,467) (3,467)
shareholders of
the Company
Balance as at
30/06/2004
17,437 6,655 - 78 4,884 29,054
Balance as at
01/01/2005
- As previously 17,457 6,703 - - 6,852 31,012
reported
- Changes in
- - - 346 (346) -
accounting policies
FRS 102
- As restated 17,457 6,703 - 346 6,506 31,012
Net (loss) for the
- - - - (279) (279)
period
Movements during - - - 131 - 131
the period
Issuance of
49 116 - - - 165
ordinary shares
Balance as at 17,506 6,819 - 477 6,227 31,029
31/03/2005
Net profit for the
- - - - 143 143
period
Movements during - - - 145 - 145
the period
Issuance of
1,371 7,611 - - - 8,982
ordinary shares
Dividends paid to
- - - - (4,225) (4,225)
shareholders of
the Company
Balance as at
30/06/2005
18,877 14,430 - 622 2,145 36,074

1(d)(ii) Details of any changes in the company's share capital arising from rights issue,
bonus issue, share buy-backs, exercise of share options or warrants, conversion of
other issues of equity securities, issue of shares for cash or as consideration for
acquisition or for any other purpose since the end of the previous period reported
on. State also the number of shares that may be issued on conversion of all the
outstanding convertibles as at the end of the current financial period reported on
and as at the end of the corresponding period of the immediately preceding
financial year.
The issued and paid-up capital of the Company increased from S$17,505,500 as at 31
March 2005 to S$18,877,250 as at 30 June 2005. The increase was due to 2,035,000 new
ordinary shares of S$0.05 each alloted and issued pursuant to the exercise of options
granted under the Food Empire Share Option Scheme (the “Option Scheme”). In addition,
25,400,000 new ordinary shares of S$0.05 each alloted and issued pursuant to the Sales &
Purchase agreement entered with Sudeep Nair and Bestgate Investments Ltd and
completed on 30 June 2005.
Balance as at No of options No of options No of options Balance as at Exercise Price Exercise Period
01-Apr-05 granted during lapsed during the exercised during the 30-Jun-05 per share
the period period
period
$
2002 Options 8,450,000 - (105,000) (2,035,000) 6,310,000 0.17 14 March 2004 to 13 March 2012
2002 Options 800,000 - - - 800,000 0.17 14 March 2004 to 13 March 2007
2003 Options 500,000 - - - 500,000 0.27 04 June 2005 to 13 March 2012
2004 Options 400,000 - - - 400,000 0.275 25 May 2006 to 24 May 2009
2004 Options 12,525,000 - (800,000) 11,725,000 0.275 25 May 2006 to 24 May 2014
22,675,000 - (905,000) (2,035,000) 19,735,000
As at 30 June 2005, options to subscribe for a total of 19,735,000 ordinary shares were
outstanding under the Option Scheme . As at 30 June 2004, there were unexercised
options for 25,650,000 of unissued ordinary shares of the Company under the Option
Scheme.
2. Whether the figures have been audited or reviewed and in accordance with which
auditing standard or practice.
The figures are unaudited and were not reviewed by the auditors.
3. Where the figures have been audited or reviewed, the auditors’ report (including any
qualifications or emphasis of a matter).
Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer’s
most recently audited annual financial statements have been applied.
The Group has applied the same accounting policies and methods of computation in the
financial statements for the current financial period compared with the audited financial
statements as at 31 December 2004 except for the adoption of the following new Financial
Reporting Standards (“FRS”) that are mandatory for the financial years beginning on or after 1
January 2005:
FRS 21:
FRS 102:
The Effects of Changes in Foreign Exchange Rates
Share-based payment
The impact of the changes in accounting policies is as follows:

1. FRS 21
The adoption of FRS 21 has impact on the following:-
a) Net Profit for the Group for Half Year ended 30 June 2004 was decreased by S$221,000.
b) There was no impact on the revenue reserve of the Group as at 1 January 2004 as the
Management is of the opinion that it is impractical to determine the effects of the change
in accounting policy prior to 1 January 2004. Hence, the change in accounting policy is
applied as at 1 January 2004.
There is no impact at the Company level as the changes affected a subsidiary of the Group.
2. FRS 102
By adopting FRS 102, the Group and Company adjusted downwards the opening revenue
reserve as at 1 January 2004 by S$14,000.
Net Profit for the Group and the Company for Half Year ended 30 June 2004 was reduced by
S$64,000.
3. Effects of FRS 21 and FRS102 on Earnings Per Share(EPS)
The effect of FRS 21 and FRS 102 on the Group’s basic and diluted EPS for Second Quarter
ended 30 June 2004 is as follows:
Basic EPS
Diluted EPS
Decrease of 0.14 cents
Decrease of 0.13 cents
The effect of FRS 21 and FRS 102 on the Group’s basic and diluted EPS for First Half ended
30 June 2004 is as follows:
Basic EPS
Diluted EPS
Decrease of 0.08 cents
Decrease of 0.06 cents
Apart from the above, the various revisions in FRS, applicable from 1 January 2005, are
currently being assessed to ensure there are no material impact on the Group’s results.
5. If there are any changes in the accounting policies and methods of computation,
including any required by an accounting standard, what has changed, as well as the
reasons for, and the effect of, the change.
Please refer to paragraph 4.
6. Earnings per ordinary share of the group for the current financial period reported on
and the corresponding period of the immediately preceding financial year, after
deducting any provision for preference dividends.
Group Group Group Group
3 months
ended
30/06/2005
3 months
ended
30/06/2004
(Restated)
6 months
ended
30/06/2005
6 months
ended
30/06/2004
(Restated)
Earnings per share
(i) Based on existing issued share capital
0.95 0.77 2.30 1.97
(cents)
(ii) On a fully diluted basis (cents) 0.95 0.76 2.27 1.95

Weighted average number of shares table
3 mths
ended
3 mths
ended
6 mths
ended
6 mths
ended
30/06/2005 30/06/2004 30/06/2005 30/06/2004
Weighted average number of shares
for calculation of basic EPS 351,358,554 347,649,451 350,799,212 345,973,517
Weighted average number of shares
for calculation of diluted EPS 354,064,391 351,638,891 355,506,046 350,251,330
7. Net asset value (for the issuer and group) per ordinary share based on issued share
capital of the issuer at the end of the:-
(a) current financial period reported on; and
(b) immediately preceding financial year.
Group Group Company Company
30/06/2005 31/12/2004 30/06/2005 31/12/2004
(Restated)
(Restated)
Net asset value per ordinary share (cents) 22.26 19.79 9.55 8.88
8. A review of the performance of the group, to the extent necessary for a reasonable
understanding of the group’s business. It must include a discussion of the
following:-
(a) any significant factors that affected the turnover, costs, and earnings of the
group for the current financial period reported on, including (where applicable)
seasonal or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or
liabilities of the group during the current financial period reported on.
In Q2 2005, the Group continued to deliver double-digit growth in Revenue and Net Profit
Attributable to Shareholders. Improvement was led by business expansion in key markets of Russia
and Eastern Europe & Central Asia. Growth was broad-based for both beverage and non-beverage
products.
Revenue
Geographical Analysis
2Q05 2Q04 Chg 1H05 1H04 Chg
$’000 $’000 $’000 $’000
Russia 24,521 21,129 +16.1% 53,992 43,356 +24.5%
Eastern Europe & Central Asia 13,085 11,112 +17.8% 22,962 23,340 -1.6%
Others 2,244 2,740 -18.1% 5,580 5,310 +5.1%
Total 39,850 34,981 +13.9% 82,534 72,006 +14.6%
Stronger sales in key market segments of Russia and Eastern Europe & Central Asia contributed to the
increase in Group Revenue. Russia remains as the top contributor to Group Revenue at 61.5%,
followed by Eastern Europe & Central Asia at 32.8%. Sales from Other Markets made up the balance.
Revenue from Russia rose 16.1% or S$3.4 million to S$24.5 million, and Eastern Europe & Central
Asia increased by 17.8% to S$13.1 million in Q2 2005. This growth was due to successful distribution
network expansion and ongoing promotion of the Group’s strong product brand name.
Sales from the Ukraine market improved owing to the strong MacCoffee brand name built up over the
years. Revenue from other Commonwealth of Independent States had also grown significantly.
Revenue from Other markets fell S$0.5 million to S$2.2 million in Q2 2005 due to lower sales from the
Middle East and USA markets.

For the first six months of 2005, Group Revenue was lifted 14.6% due to strong demand of the Group’s
flagship products such as MacCoffee 3-in-1 which continued to perform well in Russia and other
markets.
Product Analysis
2Q05 2Q04 Chg 1H05 1H04 Chg
$’000 $’000 $’000 $’000
Beverages 36,046 31,868 +13.1% 76,190 65,738 +15.9%
Non-Beverages 3,804 3,113 +22.2% 6,344 6,268 +1.2%
Total 39,850 34,981 +13.9% 82,534 72,006 +14.6%
The Beverage product segment contributed to 90.5% of the Group Revenue compared to 91.1% in the
corresponding quarter of the previous year. Beverage sales rose 13.1% to S$36.0 million led by higher
sales from coffee-based products. Revenue from Non-beverage products grew 22.2% to S$3.8 million
in Q2 2005 lifted by higher demand for snack food and confectionery food products.
Net Profit
Profit Before Tax improved by 10.1% to S$4.9 million in the second quarter of 2005. The increase in
profit was driven largely by higher sales while the costs of major raw materials had increased.
Raw Materials and Consumables Used increased by 22.2% or S$3.8 million to S$21.0 million in Q2
2005 due to rising prices of coffee powder, sugar and packaging materials which were significantly
higher compared to Q2 2004.
Staff costs increased S$1.2 million or 35.1% to S$4.5 million due mainly to business expansions and
employee share option expensing that started in this financial year.
Other operating expenses fell 5.1% to S$9.5 million despite higher business activities. This is
attributable to lower advertising and promotional expenses in the second quarter of 2005, while
overseas office expenditure increased.
Net Profit attributable to Shareholders grew 24.6% from S$2.7 million in Q2 2004 to S$3.3 million.
For the six-month period ended 30 June 2005, Group Profit attributable to Shareholders rose 18.1% to
S$8.1 million due mainly to the increase in turnover despite the rising raw material costs.
Balance Sheet & Cash Flow
Fixed Assets increased by S$1.1 million to S$14.5 million compared to year end 2004 due mainly to the
roll-out of factory in Vietnam.
On 30 June 2005, the Group completed its acquisition of 13% in Future Enterprises (Russia) Pte Ltd
and FER (HK) Limited, which resulted in intangible assets of S$7.7 million.
Cash and bank balances fell S$2.5 million from S$15.7 million as at 31 December 2004 to S$13.2
million as at 30 June 2005 partly due to payment of dividends of S$5.1 million to shareholders. The
Group continued to maintain its debt-free status.
9. Where a forecast, or a prospect statement, has been previously disclosed to
shareholders, any variance between it and the actual results.
Not applicable.

10. A 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.
The Group will continue to invest in brand building and distribution network expansion to improve its
market share.
For the rest of FY2005, market conditions are expected to remain competitive. Foreign currency
fluctuations as well as rising raw material costs will continue to be significant factors that would affect
the Group’s performance. Despite challenging business conditions ahead, the Group is cautiously
optimistic of its business prospects.
11. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on?
None
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial
year? None
(c) Date payable
Not applicable.
(d) Books closure date
Not applicable.
12. If no dividend has been declared/recommended, a statement to that effect.
Not applicable.
PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)
13. Segmented revenue and results for business or geographical segments (of the group) in
the form presented in the issuer’s most recently audited annual financial statements,
with comparative information for the immediately preceding year.
Not applicable
14. In the review of performance, the factors leading to any material changes in
contributions to turnover and earnings by the business or geographical segments.
Not applicable.
15. A breakdown of sales.
Not applicable.

16. A breakdown of the total annual dividend (in dollar value) for the issuer’s latest
full year and its previous full year.
Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)
Latest Full Year (S$)
FY2004
Previous Full Year (S$)
FY2003
Ordinary - -
Preference - -
Total: - -
BY ORDER OF THE BOARD
Tan San-Ju
Company Secretary
11 August 2005