BANGI (Jan 8): In-flight caterer Brahim's Holdings Bhd expects to register profit in the current financial year ending Dec 31, 2016 (FY16) as the company eyes new airlines as potential clients.
Brahim's executive chairman Datuk Seri Ibrahim Ahmad Badawi said the company, which aimed to report "substantial" profit in FY16, was also expanding its army rations production abroad.
"We are eyeing to turn our operations around in FY16, over time. It won't be a complete turnaround, because we made massive losses but it will still be quite substantial," he said.
Ibrahim was speaking to reporters during Deputy International Trade and Industry Minister Datuk Ahmad Maslan's visit to Dewina Food Industries Sdn Bhd here today.
Dewina is a unit under Brahim's, which reported a net loss of RM12.61 million in 9MFY15 compared to a net profit of RM6.73 million a year earlier.
Today, Ibrahim said Brahim's was serving 37 airlines. The list includes British Airways, Malaysia Airlines Bhd and AirAsia Bhd.
He said new airlines entering the Malaysian market would usually approach Brahim's.
"When Malaysia Airports Holdings Bhd gets new airlines in, chances are that they will talk to us. We are expecting at least three or four new airlines to come in, but we are not sure whether they will be working with us in the future," he said.
Brahim's is reducing its dependence on the airline-catering business. Ibrahim said the company had commenced the manufacturing of army rations two months ago via its factory in Jordan.
"We have been over dependent on the airline business for a long time. Now is the time to look out for opportunities, not just locally but overseas as well.
"All the while, about 80% or 90% of our operations were concentrated on the airline business. We will work to reduce it to 50% or 60% in the future," he said.
At 5pm, Brahim's shares rose two sen or 2% to close at RM1.05, giving the company a market capitalisation of RM248.12 million.
The stock saw some 1.7 million shares traded.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)