KUALA LUMPUR: Regional poultry producer Leong Hup International Bhd (LHI) expects to record revenue growth of RM500 million per year for The Baker’s Cottage (TBC) by 2024.
Executive director and group chief executive officer Tan Sri Lau Tuang Nguang said the group’s wholly-owned subsidiary Leong Hup (M) Sdn Bhd plans to expand TBC’s store network going forward.
“The group also plans to expand the business to other countries that we are in, however, it depends on the pandemic situation and performances for this year,” he told reporters after LHI’s first annual general meeting today.
On June 1, Leong Hup acquired the entire equity interest in food manufacturer and distributor The Baker’s Cottage Sdn Bhd (TBC) for RM17.94 million.
Lau said the acquisition of TBC has allowed the company to move downstream and open up a new revenue stream for its poultry products.
LHI recorded a lower net profit of RM21.78 million for the first quarter (Q1) ended March 31, 2020 from RM60.58 million posted in the same quarter last year. Revenue decreased 4.8 per cent to RM1.43 billion from RM1.51 billion previously.
The company said the lower revenue was due to lower sales of livestock feed and lower average selling price (ASP) of eggs in Malaysia, decrease in ASP of day-old-chicks and livestock feed volume in Indonesia, as well as lower ASP of broiler chickens in Vietnam. - BERNAMA
source https://www.thesundaily.my/business/leong-hup-eyes-rm500m-revenue-from-the-baker-s-cottage-by-2024-ED2630237
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