Food Empire

2c worth

www.gladioluslane.net/food-empire

Nice pick of a resilient business which looks like it will have a very positive year in 2019. Not surprisingly, Food Empire has embarked on share buyback. Yesterday was 3rd day.

links.sgx.com/1.0.0/corporate-announceme...c9c82897edfdba432543

Looks like Food Empire's cost of a key raw material has gone down!
Will that improve its gross margin?
Will Food Empire reduce selling prices? (probably not)



Picture Source: markets.businessinsider.com/commodities/coffee-price

Share price doing well ahead of likely big dividend announcement -- becos of S$49 million sale proceeds from disposing its building in Harrison Rd in 2022.

Just guessing : If it is 6 cents a share, company can afford the 535m shares x 6 cents = S$32 million payout from the sales proceeds. Means it still has lots of money from positive operating cashflow in 2022.