LONDON Biscuits Bhd expects its revenue to increase by 20% annually in the coming years following its strategic move to expand production capacity and move into new export markets.
The Johor-based snack food and confectionery manufacturer posted an increased revenue of RM18.36mil for the second quarter ending Dec 31, 2004 from RM17.06mil recorded in the previous corresponding period.
In the first six months to December 2004, revenue improved 13.6% to RM35.12mil compared with the previous corresponding period.
The group hoped to capture a bigger slice of the confectionery market in the US and Europe, said managing director and chief executive officer Liew Yew Chung.
Its current major markets are the Asia Pacific region, which contributed 42% to total revenue, and the Middle East which contributed 11%.
“We are already in the US and Europe but not in a big way. We hope to increase our market share 5% from the current 2%,” he said in Kuala Lumpur yesterday after an agreement signing ceremony with local artiste Erra Fazira.
In a move to increase production and expand aggressively into new markets, London Biscuits acquired a 77% stake for RM12.32mil in Kinos Food Industries (M) Sdn Bhd.
London Biscuits has four factories in Johor with seven production lines and two warehouses. Its product range includes about 70 types of assorted confectionery and corn snack products.
It plans to introduce five to 10 products a year to keep pace with changing demand and new market trends.
Recently, it signed an agreement with Fun Characters International Pte Ltd to renew its status as an official Disney licensee for two more years.
Apart from the export market which contributed 60% of the total revenue, Liew said London Biscuits planned to capture a larger share of the domestic market for confectionery products.
He said Erra, who was appointed London Biscuits ambassadress under a one-year agreement, was expected to play an instrumental role in the promotion of London Biscuits’ ready-to-eat Swiss rolls and to spearhead the company’s brand building exercise in the Malaysian towns. – Bernama