KUALA LUMPUR (Aug 24): Oversea Enterprise Bhd, whose earnings has been very volatile since being listed on the ACE Market of Bursa Malaysia in 2010, is exploring various opportunities within the food and beverages (F&B) sector, to broaden and enhance its revenue base for the long term.

Among the businesses the group is eyeing include a premium burger restaurant chain and the vegetarian food business.

According to Oversea Enterprise's shareholder William Ng, the group is planning to venture into vegetarian food business, which automatically obtains halal certification, to cater to market needs.

“The management are of the view that the operating environment of F&B business is challenging. Hence, they would like to expand within F&B business to have wider reach.

“Aside [from] that, the management also plans to bring in an Australia premium burger restaurant chain to further broaden its income base,” Ng told theedgemarkets after the company's Annual General Meeting (AGM) here today.

According to Ng, the management has indicated they are unlikely to make the move anytime soon, given the current challenging economic situation.

“As per management's guidance, all the plans are likely to materialise after 2017,” Ng added.

He said the management was hoping that this approach would allow the company to have a stronger position in the F&B sector and imbue greater sustainability in its business model.

Oversea Enterprise had bought a 30.1% stake in Burger Foundry Australia Pty Ltd, an Australia based burger chain restaurant, for A$300,000 (approximately RM900,000) on Oct 2, 2013.

According to its Annual Report 2015, the group has yet realised any contributions from the venture.

On outlook for the current financial year, Ng said the management has indicated this year would be a tough year ahead, as the implementation of goods and services tax (GST) has dampened the overall market sentiment.

“As such, the group will continue to embark on its cost optimisation plan and enhance its operational efficiency,” he added.

For the financial year ended March 31, 2015 (FY15), Oversea Enterprise generated RM540,000 in net profit on the back of RM62.4 million revenue.

It is learnt that the revenue of Oversea Enterprise for the first financial quarter ended June 30, 2015 (1QFY16) was badly hit by the GST.

The F&B group is set to announce its result within this week.