| Three key happenings at coffeemix group Food Empire recently: » Food Empire Holdings CEO Sudeep Nair has done it thrice in a row, buying loads of shares of the company right after the release of its quarterly results.
» Food Empire officially opened its instant coffee plant in India. |
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Sudeep Nair, CEO.
NextInsight file photo The positive 1Q2017 results were a catalyst for the stock price as were the CEO's stock purchases.
As a result, the stock price has doubled since mid-Nov, from 35.2 cents (after the 3Q2016 results) to 56.5 cents (after the 4Q2016 results) and to 70 cents recently (after the 1Q2017 results).
The CEO's average purchase price was 50.86 cents.
Since Nov 2016 (when he made the first insider purchases of Food Empire since May 2012), Mr Nair has loaded up 15,522,200 shares for S$7.89 million. He now holds a 10.2% stake in the company.
This table details his purchases after the release of Food Empire's 3Q16, 4Q16 and 1Q17 results:
|
Date
|
No. of shares bought |
Average price |
Cost |
Stake |
|
15 May 2017 |
813,800 |
65.8 c |
$535,155 |
54,608,599 (10.24%) |
|
12 May 2017 |
2,800,000 |
65.4 c |
$1,830,920 |
|
|
2 March 2017 |
3,175,800 |
58.2 c |
$1,847,680 |
|
|
1 March |
824,200 |
56.5 c |
$465,591 |
|
|
22 Nov 2016 |
2,500,000 |
43.2 c |
$1,080,000 |
|
|
16 Nov 2016 |
2,500,000 |
41.7 c |
$1,042,250 |
|
|
15 Nov 2016 |
1,350,000 |
40.3 c |
$544,185 |
|
|
14 Nov 2016 |
1,558,400 |
35.2 c |
$548,713 |
Food Empire's 1Q2017 reflected relative stability in its markets, especially in its No.1 market, Russia, where the ruble has strengthened and looked stable.
The ruble-USD exchange rate has been mainly below 60 to 1 compared to mainly above 70 to 1 in 1Q2016. The other two markets that did well are as follows:
|
1Q2017 revenue |
Why rise |
|
|
Russia |
+23% |
Ruble rose against USD |
|
Kazakhstan & CIS markets |
+ 142% |
Change in business model; reduction in price compensation to distributor in Kazakhstan; aggressive promotion. |
|
Other Markets |
+ 38% US$11.8 m |
Higher sales of non-dairy creamer and instant coffee. |
Food Empire is working on improving sales in Myanmar and China, and turning them into its next growth catalysts.
In Myanmar, it recently introduced BOLT, a chocolate-flavoured 3-in-1 malt drink.
In China, under a new management, Food Empire is driving sales of its coffee products online in addition to the conventional channels (supermarkets and convenience stores).
In South Korea, 20%-associate Caffe Bene is the main contributor to the "share of loss of associates" of US$734,000 in 1Q2017. Caffe Bene typically experiences relatively low sales in winter and higher sales in summer.
 In background is Food Empire's instant coffee plant in Andhra Pradesh. At its official opening: Mr S. Iswaran, Singapore Minister for Trade and Industry (centre) with Food Empire CEO Sudeep Nair. Photo: IE Singapore. On 16 May, Food Empire officially opened its state-of-the-art instant coffee manufacturing facility in Mambattu, Andhra Pradesh, India. The celebration was graced by Mr S. Iswaran, Singapore Minister for Trade and Industry, and Mr. N. Amarnath Reddy, Andhra Pradesh Minister for Industries. The plant is currently producing 10 different types and qualities of spray dried instant coffee and granulated coffee. Despite being operational for slightly more than a year only, the plant is already profitable. About half of its output serves as raw material for Food Empire's own consumer products, while the other half is sold to third parties. Food Empire said it would ramp up production and expand its product portfolio from the plant. |