Food Empire Holdings Ltd (FEH) is poised for further growth in the second half of 2025, with its share price already appreciating by 80% year-to-date as of 18 June. Investment house CGS International anticipates a potential earnings surprise when it reports its first-half results in August, driven by strong revenue performance and a sharper focus on profit margins. The company’s new freeze-dried coffee powder production facility in Vietnam, set to commence operations in 2028, is expected to further boost earnings.
CGS International’s revenue forecasts for 2025 to 2027 have been increased by 3.7% to 7.2%, with core net profit projections rising by 11.4% to 12.8%. The company plans to invest $80m (£64m) in a new Vietnam facility, which will have a planned capacity of 5,500 tonnes per annum, 25% higher than its current plant in India. This expansion could generate $40m (£32m) to $60m (£48m) in annual revenue over 2028 to 2030.
The company is also expanding its snack manufacturing facility in Malaysia and constructing a new 3-in-1 coffee-mix manufacturing facility in Kazakhstan, expected to be completed by the end of 2025. These initiatives are part of FEH’s strategy to maintain its growth momentum and strengthen its market position.
FEH’s management remains optimistic about achieving a net profit margin of around 10%, aligning with its historical average. The company’s focus on brand building and market expansion, particularly in Vietnam, is expected to drive future growth. Key risks include geopolitical tensions and currency fluctuations, particularly in its key market, Russia.
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