Wednesday, October 27, 2010

CI Holdings to expand distribution outlets to 45,000

KUALA LUMPUR: CI Holdings Bhd plans to expand distribution outlets to 45,000 in its current financial year ending June 30, 2011 from 42,000 in FY2010, said CEO Erwin Selvarajah.

"We hope to maintain throughput per outlet at about 7% to 8%, although 5% to 6% is probably more realistic as we near saturation point," he told reporters after CI Holdings' AGM on Wednesday, Oct 27.

Group managing director Datuk Johari Abdul Ghani said CI Holdings was still considering M&A possibilities with local food-related companies to leverage on its wide distribution network.

"We have identified some companies, but face two main stumbling blocks, namely ownership of the companies which are mainly held by families, and pricing, which must be justifiable to shareholders," he said.

"Talks are still in a preliminary stage and we are not ready to sign any agreements yet."

CI Holdings posted net profit of RM38.17 million in FY2010 on revenue of RM516.40 million. It is expected to release its 1QFY11 results early next month.

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