By Sharen Kaur
sharen@nstp.com.my
Published in NST on Spetember 8, 2012
BRAHIM'S Holdings Bhd says its current dependence on airline catering, and food and beverage (F&B) businesses will be reduced by 2015, once its sugar business kicks off.
The company expects earnings to surge significantly from 2014 as it starts to sell refined sugar, commercially marketed under the Borneo Sugar brand.
For fiscal 2011, Brahim's posted net profit growth of 42.4 per cent to RM9.37 million on higher revenue of RM184.46 million. Some 75 per cent of the earnings were driven by in-flight catering services at the Kuala Lumpur International Airport. The rest was from its F&B operation.
Brahim's aims to dominate the sugar market in Sabah and Sarawak via its 60 per cent unit, Admuda Sdn Bhd.
Admuda has a licence from the Ministry of International Trade and Industry (Miti) to manufacture refined sugar and molasses for the two states.
Currently, the sugar market in Malaysia is controlled by Felda Global Ventures Holdings Bhd's unit MSM Malaysia Holdings Bhd and Tan Sri Syed Mokthar Al-Bukhary's Central Refinery Sdn Bhd, with two sugar refineries each in Peninsular Malaysia.
As sugar is a regulated commodity, the licence awarded to Admuda was the third by Miti in 37 years.
"This is a very valuable licence and we are honoured to be in this business. Once in full swing, we expect equal contribution from airline catering, F&B and food manufacturing, which includes sugar processing," Brahim's director Datuk Howard Choo told Business Times recently.
Choo said Brahim's has finalised the design for the RM130 million sugar refinery in Kuching, Sarawak, and will be starting construction soon.
"We have completed soil test and will start landfill this month. We target to finish building the refinery by December 2013 so it could began operation by early 2014," Choo said.
Brahim's initial target is to control 30 per cent of the sugar market in Sabah and Sarawak. There is annual demand of about 350,000 tonnes of sugar there, met via imports from the peninsula.
The company is able to meet part of that as its sugar refinery will have initial production of 100,000 tonnes a year. The facility is designed to have a maximum capacity of 400,000 tonnes per annum.
Brahim's executive chairman Datuk Ibrahim Ahmad Badawi has said it expects 10 to 15 per cent in earnings contribution, and some RM250 million in revenue from the refinery in its first year of operation.
sharen@nstp.com.my
Published in NST on Spetember 8, 2012
Sugar ops to sweeten Brahim's earnings
 |
The company expects earnings to surge significantly from 2014 as it starts to sell refined sugar, commercially marketed under the Borneo Sugar brand.
For fiscal 2011, Brahim's posted net profit growth of 42.4 per cent to RM9.37 million on higher revenue of RM184.46 million. Some 75 per cent of the earnings were driven by in-flight catering services at the Kuala Lumpur International Airport. The rest was from its F&B operation.
Brahim's aims to dominate the sugar market in Sabah and Sarawak via its 60 per cent unit, Admuda Sdn Bhd.
Admuda has a licence from the Ministry of International Trade and Industry (Miti) to manufacture refined sugar and molasses for the two states.
As sugar is a regulated commodity, the licence awarded to Admuda was the third by Miti in 37 years.
"This is a very valuable licence and we are honoured to be in this business. Once in full swing, we expect equal contribution from airline catering, F&B and food manufacturing, which includes sugar processing," Brahim's director Datuk Howard Choo told Business Times recently.
Choo said Brahim's has finalised the design for the RM130 million sugar refinery in Kuching, Sarawak, and will be starting construction soon.
"We have completed soil test and will start landfill this month. We target to finish building the refinery by December 2013 so it could began operation by early 2014," Choo said.
Brahim's initial target is to control 30 per cent of the sugar market in Sabah and Sarawak. There is annual demand of about 350,000 tonnes of sugar there, met via imports from the peninsula.
The company is able to meet part of that as its sugar refinery will have initial production of 100,000 tonnes a year. The facility is designed to have a maximum capacity of 400,000 tonnes per annum.
Brahim's executive chairman Datuk Ibrahim Ahmad Badawi has said it expects 10 to 15 per cent in earnings contribution, and some RM250 million in revenue from the refinery in its first year of operation.
No comments:
Post a Comment