KUCHING: Supreme Consolidated Resources Bhd expects to complete its new warehousing facilities at Demak Laut Industrial Park here by this month. The project costing about RM13 million will provide new facilities comprising a three-storey office cum warehouse that include cold storage facilities for freezer and chiller to store frozen and chilled food, a fully equipped kitchen as well as loading and unloading bay.
The allocation of RM3.5 million (from part of the proceeds from the company’s initial public offering (IPO) early this year) for the project has been utilised, Supreme said when releasing its second half of 2019 (H2-2019) financial results.
The IPO raised RM6.57 million, of which RM2.061 million has been spent on working capital. In H2-2019, Supreme group net profit more than doubled to RM2.6 million from RM1.25 million in H22018 as revenue grew to RM74.67 million from RM70.25 million. Earnings per share increased to 2.17 sen from 1.17 sen.
The group’s business operations comprise the distribution and warehousing of food and beverage (F&B) products from third party brands, focusing on frozen food, chilled food, dairy products and dry F&B. For the full year of 2019, the group’s revenue jumped to RM145 million from RM134.85 million in FY2018 while group net profit rose to RM6.38 million from RM4.09 million.
Frozen food contributed RM91.26 million or 63 percent to group revenue of RM145 million, chilled food revenue was RM24.67 million (17 percent), dairy products RM9.96 million (7 percent) and dry F&B RM19.14 million (13 percent).
Supreme attributed the 10 percent increase in group revenue year-on-year to additional turnover of RM5.6 million generated from new distributorships of chilled and dry food. Frozen meat and further processed food’s revenue increased by RM800,000 and RM3 million respectively during the same period.
“The group has ceased the distributorship of ‘F&N’ beverages in June 2019 mainly due to lower than expected sales volume of F&N beverages. The underperformance of sales has resulted in a loss of RM0.5 million from the F&N distributorship for the financial year ended September 30 2019,” said Supreme.
On the increase in group profit of about RM1.15 million year-on-year, the company said it was mainly contributed by the additional sales generated from a new agency and the increase in sale of frozen food which fetched higher margin. “Apart from the construction of new warehousing facilities, our group is also looking at expanding its product range and distribution network,” said Supreme.