Food Empire Holdings, noting Russia and Ukraine accounted for around 45 percent of 2021 revenue, has halted factory operations in Ukraine, the company said in a filing to SGX Wednesday.
“In Ukraine, the group’s primary concern is for the safety and well-being of our staff and there is so far no
reported damage to our equipment and properties,” Food Empire said. “Sales related activities have also been temporarily suspended due to massive disruptions to supply chains, damage to public infrastructure and human displacement.”
Food Empire added, however, that absent massive or permanent demographic change, consumer demand for food and beverages is likely to be resilient.
In Russia, economic sanctions may have broad implications to the group, but the extent is unclear, Food Empire said.
“Devaluation of the Russian ruble and Ukrainian hryvnia are observed and these currencies may continue to remain volatile,” the company said.
“The current raft of sanctions are primarily aimed at restricting the ability of the Russian government and banking industry to transact internationally, as well as against certain sensitive sectors like technology and Energy, but excludes essential industries like pharmaceutical and food & beverages,” Food Empire said.
“The food & beverage sector, which the group operates, is unlikely to face demand destruction as it is an essential industry. Hence the group remains optimistic about its long-term prospects in Russia,” the company said.
The company is a food and beverage maker, with products including instant beverages, frozen convenience food and snack food. Its brands include Kracks potato chips, Orien Bites frozen finger food, Bolt malt drink and three-in-one instant coffee brands CafeRite and Petrovskaya Sloboda.