Petaling Jaya: The Supreme Consolidated Resources BHD (SCR) is increasing its product chain through various initiatives this year to meet the growing consumer demand.
The company is gaining new local and international agency rights, acquiring other distributors, and running the export and trade of dairy products.
“Also, we are intensifying efforts to strengthen their distribution network in Sarawak and Saba through the acquisition of appropriate distributors or by establishing organic distribution networks. “To support this strategic development, we will also expand our warehouse capacity to support the groups’ growing operating needs,” said SCR Executive Chairman and Non-independent Director Datuk Richard V Liang Huat.
He said that SCR is optimistic about possibilities and approaches and will continue to focus on increasing its business operations.
“We will also find ways to expand our geographical footprints and evaluate opportunities that can add value to our ongoing efforts in trade development,” V said in the annual report of the company filed with Barsa Malaysia. Are.”
SCR recorded a revenue growth of RM27.3 million to RM226.9 million for the financial year ending September 30, 2024 (FY24) as compared to the previous year. The growth was inspired by high festive sales and wholesaler customers wholesale purchases of frozen meat and processed food products as well as strong export sales to Myanmar.
The frozen and cold section was the largest revenue contributor, leading to RM203.32 million, or 89.59% of the total group revenue. Sarawak operations contributed RM222.9 million, including a significant increase of RM1.9 million to RM2.9 million in ad hoc export revenue.
The gross profit of the group rose by 6.64% to RM25.45 million, which is supported by 13.67% revenue growth. However, the gross profit margin has reduced from 11.95% to 11.21%, which reflects the high ratio of wholesale sales with low margin on frozen meat.
Financial costs increased by RM310,000, due to which increase in interest rates and more use of working capital line to fund stock purchases.
Despite these challenges, after the tax improvement in post -tax profit increased to RM10.01 million, which increased by high gross profit and net loss profit on RM1.1 million business receipts.
In FY 24, SCR had cash and cash counterparts RM14.68 million, outlining the strong liquidity of the group. This solid financial base ensures the ability to fulfill short -term obligations while maintaining confidence in the development path of the group.
SCR provides extensive market access and coverage for consumer products in Sarawak and Saba. The company distributes a third-party brand and a series of its own products, including frozen and cold food, comprehensive food and beverage products and non-food items.
V said, “It is important to ensure that our products reach the final consumers as much as possible. Thus, we use indirect distribution channels where we sell our products through middlemen that will then sell these products to the network of our respective customers.
“Through indirect delivery channel, we have wholesale traders like agents, stockists and distributors who use our current network to sell our products to other wholesalers, retailers and horeca (hotels, restaurants and cafes) .
“We also have retailers such as supermarkets, hypermarkets, grocery stores and diverse shops, as well as food service operators such as Horeka (hotels, restaurants and catering), bakery, canteens and caterrends.”
The business of SCR is supported by Kuching and its distribution centers in Miri. Distribution centers are equipped with extensive storage facilities and cold storage facilities to complete the storage and distribution of a variety of consumer products.
