PETALING JAYA: Supreme Consolidated Resources Bhd (SCR) is enhancing its product range through various initiatives this year to meet evolving consumer demand.
The company is securing new local and international agency rights, acquiring other distributors, and driving the export and trading of dairy products.
“Simultaneously, we are intensifying efforts to strengthen our distribution network in Sarawak and Sabah, either through the acquisition of suitable distributors or by establishing an organic distribution network. To support this strategic growth, we will also expand our warehouse capacity to cater to the group’s increasing operational needs, SCR executive chairman and non-independent director Datuk Richard Wee Liang Huat said.
He said SCR remains optimistic about prospects and outlook and will continue to focus on enhancing its business operations.
“We will also seek avenues to expand our geographical footprints and evaluate opportunities that can add value to our ongoing efforts in business sustainability as well as business growth,” Wee said in the company’s annual report filed with Bursa Malaysia.
SCR recorded a revenue increase of RM27.3 million to RM226.9 million for the financial year ended Sept 30, 2024 (FY24) from the previous year. The growth was driven by higher festive sales and bulk purchases of frozen meat and processed food products by wholesaler customers, alongside stronger export sales to Myanmar.
The frozen and chilled segment remained the largest revenue contributor, generating RM203.32 million, or 89.59% of total group revenue. Sarawak operations contributed RM222.9 million, including a significant rise in ad-hoc export revenue from RM1.9 million to RM2.9 million.
The group’s gross profit grew by 6.64% to RM25.45 million, supported by a 13.67% revenue increase. However, the gross profit margin narrowed to 11.21% from 11.95%, reflecting a higher proportion of bulk sales with lower margins on frozen meat.
Financial costs rose by RM310,000, attributed to increased interest rates and greater utilisation of the working capital line to fund stock purchases.
Despite these challenges, profit after tax improved to RM10.01 million, boosted by higher gross profit and net impairment gains on trade receivables amounting to RM1.1 million.
SCR’s cash and cash equivalents stood at RM14.68 million in FY24, underscoring the group’s robust liquidity position. This solid financial footing ensures the ability to meet short-term obligations while maintaining confidence in the group’s growth trajectory.
SCR offers comprehensive market access and coverage for consumer products in Sarawak and Sabah. The company distributes both third-party brands and its own range of products, including frozen and chilled food, ambient food and beverage products, and non-food items.
Wee said, “Having a wide distribution network is key in ensuring that our products reach as many end consumers as possible. As such, we utilise the indirect distribution channel where we sell our products through intermediaries who will then resell these products to their respective networks of customers.
“Through the indirect distribution channel, we have wholesaler customers such as agents, stockists and distributors who utilise their existing network to sell our products to other wholesalers, retailers and HORECA (hotels, restaurants and cafes).
“We also have retailer customers such as supermarkets, hypermarkets, grocery stores and sundry shops, as well as food service operator customers such as Horeca (hotels, restaurants and catering), bakeries, canteens and caterers.”
SCR’s business is supported by its distribution centres in Kuching and Miri. The distribution centres are equipped with ambient warehousing facilities and cold storage facilities to cater to the storage and distribution of various types of consumer products.
