Talking about a food & beverage company in 2026 sounds outdated. After all, they are normally boring. They grow slowly but are resistant to recessions.
However, this particular company has had a strong quarter, not from its home country - Singapore - but from Russia and Central Asia
Food Empire (FE) is the highlight for this week. It has been rough for the Singaporean economy this year as it faces high fuel prices and disruption in global trade due to the conflict in the Middle East.
However, FE has weathered it quite well, with the share price rising by 28% (as of 19 May 2026) since the beginning of the year.
Source: Shareinvestor
What does Food Empire do?
Food Empire manufactures and distributes food and beverage products such as instant coffee, chocolate, snacks, etc. Its popular brands include MacCoffee, CafePho, Klassno, MacTea, MacChocolate, MacChoco, MacCereal and Kracks.
FE doesn’t just sell to Singapore, but has expanded to over 60 countries in various regions. Russia is the biggest contributor to its revenue at 33%, followed by Southeast Asia (25%) and Central Asia (18%).
Source: FE 2025 Annual Report
Strong 1Q 2026 and Past Revenue Growth
FE’s 1Q 2026 results were one of its strongest ones. Revenue was up by 17% to US$160 million, driven mainly by its Central Asia (+36.4%) and Russia (29.4%) segment sales.
Central Asia’s business was driven by both Kazakhstan and Uzbekistan, where FE rolled out new products, increased prices, and grew its distribution network and marketing.
Meanwhile, Russia experienced a higher sales volume as the Rouble appreciated against the U.S. Dollar.
Source: FE 1Q 2026 Business Updates
In the past five years, revenue has grown by an average annual rate of 14.3%, driven by Central Asia and Southeast Asia. Russia’s sales have declined from 2022 to 2024, as the Ukraine-Russia conflict dampened consumer demand. That has reversed in 2025, with Russia’s segment growing by 35% due to gold prices hitting record-highs. The Rouble is pegged to gold, which means that it has appreciated against the U.S. Dollar.
Source: Shareinvestor
Declining Net Profits, But Due to Expansion
Net profit has declined from its peak of SG$81 million in 2022 to SG$46 million in 2025. This is mainly due to the higher interest expense. Total long-term debt more than doubled from SG$40 million to SG$86 million over the same period. Furthermore, it has increasingly spent more on its advertising and marketing division to expand sales.
FE is expanding its manufacturing capabilities. Two capacity expansion projects are in the pipeline:
India: Expansion of spray-dried soluble coffee manufacturing facility in South India. Expected to be completed by 2027.
Vietnam: New freeze-dried soluble coffee manufacturing facility. Expected to be completed by 2028.
Its operational cash flow has actually tripled from SG$35 million in 2024 to SG$112 million in 2025, boosting its overall cash position. This shows that its operations is still generating higher margins but its bottomline is impacted by higher interest, advertising and marketing expenses.
Source: Shareinvestor
Strong Market Position and Favourable Outlook
According to FE, it is the market leader in the 3-in-1 coffee mixes in Russia, Ukraine, and Kazakhstan. And it is the top 3 instant coffee mix brands in Vietnam through its CafePho brand.
The outlook for instant coffee in Russia and the overall market is positive
According to Deep Market Insight, the Russian instant coffee market is projected to grow by 6.2% every year from 2026 to 2033.
According to Grand View Research, the global instant coffee market could grow by 5.4% every year from 2025 to 2030 to reach US$110.3 billion.
The View from the Market
Market analysts are targeting a price of SG$3.88 for Food Empire with an implied upside of +27.6%.
Source: Shareinvestor
Meanwhile, FE is trading at a high valuation given investors’ interest in FE’s prospects. Price-to-book ratio is trading at 3.5 times compared to the industry’s average of 1.5 times.
Company | Price-to-Book Ratio |
Food Empire | 3.5 |
Delfi | 1.7 |
QAF | 1.1 |
Leong Guan | 2.0 |
PepsiCo $PEP ( ▲ 0.95% ) | 9.5 |
Mondelez $MDLZ ( ▲ 0.81% ) | 3.1 |
J.M. Smucker $SJM ( ▲ 1.81% ) | 2.1 |
Source: Shareinvestor
Conclusion
Food Empire’s 1Q 2026 results have been one of its strongest in recent years, and indicate the favourable outlook of the F&B company in Russia and Central Asia.
While profits have declined, FE’s expansion is set to drive its revenue growth higher in the coming years and improve its profit margins gradually.