KUCHING: Supreme Conso-lidated Resources Bhd (Supreme), which was listed on LEAP Market in January 2019, has commenced the construction of its proposed new warehousing facilities at Demak Laut Industrial Park here.
The project is expected to be completed by December 2019, Supreme said when releasing its financial results of first half-year ended March 31, 2019 (1H-2019) to Bursa Malaysia.
The Kuching-based company has allocated RM3.5 million from the proceeds of its initial public offering (IPO) to part finance the new warehousing facilities project. About RM2.4 million has already been utilised.
The facilities, which comprise a three-storey office cum warehouse, is estimated to cost RM13 million. The cost includes warehouse, cold storage facilities (such as freezer and chiller room to store frozen and chilled food), office, loading and unloading bay as well as a fully-equipped kitchen.
Apart from the construction of the new warehousing facilities, Supreme said the group is looking into its product range and distribution network.
Supreme is an investment holding company with four subsidiaries, which are principally involved in the distribution and warehousing of frozen meat (beef, lamb and mutton, poultry and seafood), chilled food and diary products and dry F&B (food & beverages).
The group is also involved in the provision of transportation services.
Supreme is headed by non-executive chairman Ibrahim Baki. The company’s executive vice-chairman is Datuk Richard Wee whose private vehicle BNDM is Supreme’s single largest shareholder. Lim Ah Ted is Supreme’s managing director.
In 1H-2019, Supreme chalked up higher group revenue of about RM70.4 million against RM64.7 million in 1H-2018, an increase of RM5.76 million or 8.9 percent. The group’s pre-tax profit rose to RM4.6 million from RM3.6 million during the same period.
The sales of frozen food contributed RM43.1 million or 61 percent to group revenue while chilled food RM11.2 million (16 percent), dry F&B RM10.7 million (15 percent) and dairy products RM5.3 million (8 percent).
“The increase (in group revenue) is mainly due to additional revenue of RM8.2 million generated from new distributorships in chilled food and dry F&B segments.
“The sale of frozen buffalo meat decreased by RM7.0 million mainly due to the opening of import quota to the other wholesalers since the beginning of 2019.
“Nonetheless, the sale of other frozen meat and further processed frozen food increased by RM3.0 million and RM1.5 million respectively,” said Supreme.
The company said it recorded higher group net profit of about RM3.8 million in 1H-2019 from RM2.8 million in 1H-2018 mainly due to the gain of RM1.69 million from the disposal of the Miri warehouse.
On its prospects, Supreme said it remains optimistic in the F&B industries.
