KUALA LUMPUR: Butterfield FB Bhd (BFB) is optimistic about its prospects, underpinned by growing demand for coffee and tea extract powder blends as it looks to expand capacity and grow its matcha business.
Executive director and chief executive officer Lee Mong Khai said the company remained upbeat on the industry outlook, with Malaysia's coffee and tea extract powder blends market growing to RM1.81bil in 2025 from RM1.17bil in 2022, representing a compound annual growth rate of 15.7%.
“We remain optimistic about the industry outlook,” he said, adding that Thailand also offered growth opportunities amid the continued expansion of its food and beverage manufacturing and foodservice industries.
Looking ahead, Lee said BFB's priorities include growing sales of tea extract powder blends, particularly matcha formulations, expanding production and storage capacity at its Bukit Minyak premises and establishing a fourth manufacturing line.
The company, which is slated to list on Bursa Malaysia's ACE Market on Sept 15, is also looking to pursue suitable strategic investments, mergers and acquisitions.
For the first quarter ended July 31, 2026, BFB posted a net profit of RM6.5mil on revenue of RM69.7mil, translating into a net profit margin of 9.3%.
Its core coffee and tea extract powder blends manufacturing business contributed 79% of revenue, while sales and trading of food ingredients and instant beverage premixes accounted for the remaining 21%.
Malaysia was its largest market, contributing RM40.1mil, or 57.6% of total revenue, followed by Thailand at RM21.4mil, or 30.7%. Taiwan, Indonesia and China collectively contributed RM8.2mil.
There are no comparative figures as this is BFB's first interim financial results announcement under Bursa Malaysia's ACE Market listing requirements.
BFB expects to raise about RM72mil from its initial public offering. The proceeds will be used to expand its Bukit Minyak premises, fund working capital and strategic investments and acquisitions, as well as defray listing expenses.
