Wednesday, April 3, 2013

Brahim's wins 5 more contracts

By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on April 3, 2013


KUALA LUMPUR: Brahim's Holdings Bhd, the only licenced manufacturer of refined sugar in Sabah and Sarawak, has secured in-flight catering contracts from five leading airlines that will boost its revenue and net profit this year.

Its 70 per cent subsidiary, Brahim's Airline Catering Sdn Bhd (BAC), formerly called LSG Sky Chef-Brahim's Sdn Bhd, secured the contracts from Air France, Philipines Airlines, Nas Air, Xiamen Airline and Turkish Airlines.

This brings the total number of foreign carriers being catered by Brahim's to 36.

Brahim's biggest customer is Malaysian Airlines (MAS), which also owns 30 per cent of BAC.

The company also services AirAsia and AirAsia X and 30 over foreign airlines.

BAC prides itself in its globally recognised 100 per cent-halal flight kitchen with a fully halal-compliant integrated food logistics supply chain.

Operated by over 1,000 staff from a 59,000 sq meter complex at Kuala Lumpur International Airport (KLIA) in Sepang, it is the world's biggest halal flight kitchen.

In a statement yesterday, Brahim's chief executive officer Goh Kee Kuang said the success of securing the five new contracts is a development from its recent Malaysianisation programme.

Under the programme, the company bought out the remaining 49 per cent shares in Brahim's Sdn Bhd (BSB), formerly Brahim's-LSG Sky Chefs Holdings Sdn Bhd, from partner LSG Sky Chefs Asia.

The acquisition amounting to RM130 million was funded by Standard Chartered Bank Malaysia Bhd and completed in January this year. Prior to the acquisition, Brahim's had a 51 per cent stake in BSB.

Brahim's latest data showed that around 92 per cent of revenue came from the in-flight catering business.

Business Times has reported that Brahim's expects a quantum leap in net profit and revenue in the current year, to be driven by BSB.

BSB, through BAC, has a 25-year concession until 2028 to provide catering and related services to MAS at KLIA and Penang Airport.

For fiscal 2010 and 2011, Brahim's equity-accounted RM165.8 million and RM184.4 million respectively from BSB. From this year, it is expected to generate over RM300 million a year from BSB.


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