Financial Statement - Food Empire Holdings Limited

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.