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Singapore’s Fastest-Growing Food Companies

Someone once quipped to me that Singapore has two favourite past-times – food and talking about food. It is easy to understand why Singaporeans are keen on food – the country is a melting pot of culinary delights, a fusion of Asian cuisines and a smorgasbord of exotic flavours and spices.

According to the Department of Statistics Singapore, there are more than 6,000 eateries in Singapore of which over 2,000 are restaurants, 400 are fast-food outlets and the rest fall under the category of “others”. According to my back-of-envelope calculation, it would take me over six years to visit every one of those establishments. I dread to think what it would do to my waistline if I tried.

But this article has less to do with my silhouette and more to do the profile of Singapore’s quoted food producers. In total there are 12 stock-market listed companies involved in the production of food. They range from the $2.5b confectionary company Petra Foods (SGX: P34) to the $50m milk producer China Dairy Group, which has grown its sales at the fastest rate of the dozen companies.

BreadTalk Group (SGX: 5DA) and Etika International Holdings (SGX: 5FR) have grown revenues at a fair clip too. Over the last seven years, the bakery and the beverage company have both increased sales at a rate of over 20% annually. Not to be outdone, Super Group  (SGX: S10) , which is Singapore’s second-largest quoted food producer, has, grown its revenues at around 13%. Auric Pacific, which operates Delifrance, which has seen its revenues grow 10%.

In terms of profits though, the above companies lag Yeo Hiap Seng (SGX: Y03), which has seen profits grow almost eight fold in seven years. ABR Holdings, which holds the Swensen’s franchise in Asia, has grown their profits at 18% since 2005.

It would appear that no single company can claim to have grown both revenues and profits at the fastest rates. However, three companies rank within the top five in both categories. They are Yeo Hiap Seng, BreadTalk and Etika. So they are obvious candidates for Singapore’s fastest-growing food companies. Interestingly though, only one of the three, Etika, offers a dividend yield that would tempt an income investor to take a second look.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.