|
On behalf of the Board of Directors of Yeo Hiap
Seng (Malaysia) Berhad, I present to you the Annual Report and Audited
Financial Statements of the Group for the financial year ended 31 December
2004.
|
| |
| Review of Financial Performance |
|
The financial year ended 31 December 2004 saw the Group achieving revenue
of RM373.2 million and pretax profit of RM17.4 million, a decrease of
9% and 28% respectively as compared to those recorded in the preceding
financial year. For the year under review, core brand beverage sales increased
by 7%, driven by growth in Justea. However, this increase could not offset
the larger reduction in sales due to discontinuation of Sweetened Condensed
Milk and expiry of the Pepsi bottling agreement.
Lower revenue and exceptional item relating to one-time charge on closure
of Sweetened Condensed Milk and Pepsi production, provision for write-offs
for obsolete and idle assets, and provision for receivable write-offs
caused the net profit to decline from RM18.1 million in financial year
2003 to RM11.5 million in financial year 2004.
Net cash balance improved by RM23.5 million from RM68.3 million as at
31 December 2003 to RM91.8 million as at 31 December 2004.
|
| |
| Operation Review |
|
The Group continued to maintain its position as market leader in non-carbonated
drinks. Yeo's Justea was an outstanding product for the Group this year.
Boosted by new launches of exciting flavours, vibrant packaging designs
and refreshing taste profile, the Justea range contributed 6% of revenue.
Justea won the Gold Brand Equity Award in the RM50 million category. The
Award is conferred by Brand Equity, a magazine that recognises the performance
of both local and international brands operating in Malaysia.
In line with our focus to build our core brands, during the year, we
carried out nationwide sales and promotional activities under the "Great
Health Great Taste" campaign.
The Group reviewed the manufacturing operation in the Shah Alam plant
and decided to shut down the Sweetened Condensed Milk plant in April 2004
because it is more cost effective to out-source the production than to
produce in-house. As a result of the expiry of Pepsi bottling agreement,
we have also closed down two bottling lines in Kuching in July 2004.
Moving forward, we will focus on building our core brands and reviewing
our operation to enhance performance.
|
| |
|
|
| |
| Human Resources |
|
Our staff is our most important asset and we continue to inculcate into
the workforce the right mindset, knowledge and skill to prepare them for
the challenges ahead through continuous-learning programmes conducted
throughout the year.
|
| |
| The Board |
|
On behalf of the Board, I thank Mr Winston Mah and Mr Tham Chong Kong
for their contributions to the Group during their tenure as Directors.
The Board also warmly welcomes our newly appointed directors, Dato' N.
Sadasivan a/l N. N. Pillay and En. Razman Hafidz bin Abu Zarim.
|
| |
| Dividend |
|
For the year ended 31 December 2004, an interim dividend of 5 sen per
RM1.00 share (tax exempt) was declared and paid out to the shareholders
on 1 September 2004. The Board is recommending a final dividend of 9 sen
per share less income tax, making a total dividend of 14 sen per RM1.00
share for the year under review.
|
| |
| The Year Ahead |
|
The Food and Beverage industry continues to be highly competitive. We
will continue to focus on brand building, improving efficiency and managing
cost besides launching new products. The Board is confident that the Group
will perform better in 2005.
|
| |
| Acknowledgement |
|
The success of the Group rests primarily upon the support of our customers,
business associates, the shareholders and of course our dedicated and
committed staff.
On behalf of the Board, I would like to express our gratitude to all
of you.
|
| |
| |
| Ng Chee Tat, Philip |
| Chairman |
| |
