APOLLO FOOD HOLDINGS BHD hopes to expand the range and output of its premium quality confectionery and chocolate products to account for 40% of total production within the next three to four years from 10% presently.
Chairman and managing director Liang Chiang Heng said the company’s research and development (R&D) unit was currently developing new products and that production would probably begin in a year or two.
The new products include chocolate-coated wafer sticks, coated almonds, hazelnuts and macadamia in high-quality cocoa powder.
“Premium products have good growth potential and could generate better income for the company in the long run,” Liang told StarBiz after the company's AGM.
He said the company wanted to rely less on lower-range products over time while developing the high-range segment, as this was “where the money comes from”.
He said the premium products were aimed at consumers in Europe and the United States, as they were willing to pay more for quality.
“The company is ready to compete in these markets with other premium brands, especially those from France, Italy and Switzerland,” Liang said.
He said Apollo was negotiating to acquire a 1.2ha site next to its existing plant in Jalan Langkasuka, Larkin for future expansion.
Liang said the land would provide the much-needed space for the company to centralise its operations, now conducted in two premises in Larkin.
For the financial year ended April 30, Apollo's turnover increased to RM124.44mil from RM119.47mil the previous year. Its pre-tax profit, however, declined to RM17.23mil from RM19.93mil.
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