PETALING JAYA: The national lockdown has boosted the fortunes of several food makers including Kawan Food Bhd, whose frozen foods business seems to be enjoying brisk sales.
The strong demand is coming from within the country and overseas.
Kawan Food planned to further capitalise on the demand factor by expanding into new markets including Europe and South America, and secure more customers in North America.
Exports made up 57% of its revenues while domestic demand was at 43% for financial year (FY) 2020.
“Kawan Food’s growth plans include penetrating new markets such as those in Europe, and securing more customers in its key export market of North America, ’’ CGS-CIMB Research said in its latest report.
Kawan Food also planned to launch more innovative offerings to cater to a broader customer base and keep abreast of the market trends.
Given the growth phase, it is not discounting any mergers and acquisition opportunities that can either add to its product offerings or are synergistic with its existing business, the research house said.
Several analysts that attended the company’s virtual briefing this week are optimistic of Kawan Food’s long term prospects.
PublicInvest Research said the company’s e-commerce sales have grown by 30%-40% in the past two months albeit from a small base of about 1% of FY20 sales.
It added that Kawan Food remained committed to growing the segment with ongoing plans to increase distribution points in Ipoh and Penang.
The hotel, restaurants and cafe (Horeca) segment is also expected to be one of the key development areas post-pandemic, said the research house.
The group is also actively engaged in research and development activities to launch new products such as pizzas, pre-cooked meals and Greek pita to capture of consumer preferences.