DBE Gurney eyes profitability in two years

KUALA LUMPUR: DBE Gurney Resources Bhd expects to return to profitability in one to two years as the integrated poultry company ramps up its quick service restaurant operating under the HARUMi fried chicken brand.

Group Managing Director Datuk Alex Ding Seng Huat said with HARUMi, the company’s profit margin would easily be threefold compared with its traditional business of selling processed chicken and live chicken to wet markets.

“If we open up more HARUMi restaurants or kiosks, I believe this will result in a good turnaround for DBE Gurney in one or two years,” he told a press conference after signing a joint-venture agreement with Thailand’s Farmmesh Foods Co Ltd here today.

HARUMi, created by DBE Gurney with Taiwanese expertise, is Malaysia’s Halal-certified local fried chicken brand, with the first outlet set up in Sitiawan, Perak in 2016 and to date, there are 220 HARUMi kiosks, five food trucks and eight HARUMi restaurant and signature outlets.

By 2020, DBE Gurney targets to have 3,000 kiosks, 300 food trucks and 30 restaurant and signature outlets for HARUMi.

On overseas expansion, Ding said the group had incorporated an international office for HARUMi in Taiwan and has targetted to have 50 restaurants across China, Taiwan, Indonesia and Thailand by 2020.  

Its wholly-owned subsidiary, DBE Poultry Sdn Bhd today entered into a joint venture with Farmmesh Foods, which would see the establishment of a private limited company called Super Harumi Thailand, in which DBE Poultry would hold 30% and Farmmesh 70% equity, respectively.

“Our role is to provide consultation and training with regards to the setting up and launch of HARUMi business in Thailand while Farmmesh will take charge of the advertising and promotion initiatives, as well as, secure the critical supply chain of raw materials required.

“We plan to open two HARUMi outlets in Thailand this year and we have set aside RM500,000 in capital expenditure for each outlet,” he added.

For the 2017 financial year, DBE Gurney recorded a net loss of RM20.31mil compared with a net profit of RM250,000 in the 2016 financial year, on the back of a lower revenue of RM111.73mil versus RM112.98mil, previously. - Bernama