From day one, Food Empire had a clear direction
in the path it wanted. It was to create a product
that resonates strongly and soundly in an individual’s
emotions and everything they do.
A product that strikes a chord and fills a void
in their lives. When it’s least expected, an emotion
should register every time a customer comes into
contact with the brand. A good brand stays in
your memory.
At any given
time, somewhere out in the world, someone
is relishing a moment with a cup of coffee
from Food Empire, a moment in time, sharing
a common sentiment despite the diversity
of geographical and cultural backgrounds.
Once again,
2004 was a testament of Food Empire’s ubiquitous
resonance in the lives of people all over
the world. Last year alone, we sold more
than 2 billion cups of coffee and reached
out to more than 50 countries in the world.
This
is a momentous time for Food Empire. For
two years running in 2003 and 2004, Food
Empire has received the accolade of being
one of "The Most Valuable Singapore Brands"
at the Singapore Brand Awards. Again, our
in-house design department continued to
excel and was awarded the Singapore Packaging
Star Award 2004 for our new product, Klassno
Ready-to-Drink Canned Ice Tea. To us, the
building of brand equity is the core focus
and we seek tirelessly to instill such values
in our people and corporate culture.
Our turnover
for the year ended 31 December 2004 was
$160.4 million, an increase of 14.9% compared
to the year before. Net profit grew by 50%
to reach $15.2 million. Our balance sheet
remains conservatively positioned with shareholders’
equity of $69.3 million, zero bank borrowings
and cash at hand of S$15.7 million. All
these represent a record performance for
Food Empire.
We continue
to expand our presence in both existing
and new markets. In Vietnam, we have embarked
on the building of a new factory to cater
for local sales. The factory is our commitment
to the Vietnam market where our MacCoffee
brand has a good presence. In Indonesia,
we have partnered PT Anugerahtama Bina Citra,
a leading food and beverage company, to
jointly market and distribute a new brand
of instant coffee drinks. Indonesia is a
potential yet challenging market. By pooling
resources and coming together, we are well-positioned
to face the challenge of marketing this
product in a new country.
In 2004, we
acquired a 49% stake in Hyson Teas in Sri
Lanka. Sri Lanka is the origin of Ceylon
Tea, probably the most popular tea in the
world. With the acquisition and expertise
gained from the Hyson management team, Food
Empire is well-poised to laterally expand
its product range to include this well-loved
beverage. Hyson Liquor Tea was selected
and showcased at the world’s premier food
and beverage show held in Paris, SIAL 2004
Innovations.
Looking forward,
we expect market conditions to remain competitive
and foreign currencies fluctuations will
remain a key factor. Raw material costs
are expected to increase further in 2005.
The Group will continue to invest in brand
building and distribution network expansion
to improve its market share.
As we continue
on our branding odyssey, so does our commitment
to remain highly competitive. To our consumers,
Food Empire is more than food and beverage.
It’s about imparting values in the moments
in life.
In appreciation
of the support by shareholders, the Directors
of Food Empire have recommended a first
and final dividend of 0.50 cents (less tax)
per ordinary share and a special dividend
of 1.0 cent (less tax) per ordinary share.
On behalf
of the board, I wish to thank all our shareholders,
business partners, associates and colleagues
who have contributed to the memorable moments
in 2004.
This
is a momentous time for Food Empire. For
two years running in 2003 and 2004, Food
Empire has received the accolade of being
one of "The Most Valuable Singapore Brands"
at the Singapore Brand Awards. Again, our
in-house design department continued to
excel and was awarded the Singapore Packaging
Star Award 2004 for our new product, Klassno
Ready-to-Drink Canned Ice Tea. To us, the
building of brand equity is the core focus
and we seek tirelessly to instill such values
in our people and corporate culture.
