AGM Watch: Apollo Food’s shrinking revenue raises eyebrow

INTRIGUED with Apollo Food Holdings Bhd’s gradual revenue downtrend since 2017, the Minority Shareholder Watch Group (MSWG) will be probing the issue at the former’s annual general meeting (AGM) scheduled for Wednesday (Oct 28).

Revenue for the manufacturer and supplier of confectioneries has depreciated from RM208.92 mil in 2017 to RM174.94 mil in its FY2020, an equivalent of an average decline of 4.34% every financial year.

Questions to be raised by MSWG at the Apollo Food AGM which will take place at Mutiara Johor Bahru in Johor Bahru at 9am are:

  • Apollo Food has cited that market competition was the main contributor to the decline in revenue. As Apollo Food is not inclined to join the price war (Apollo Food’s reply to MSWG dated Dec 26, 2019), how does the group plan to increase the market share from competitors?
  • How effective are its current strategies in reversing the declining revenue trend?

Also on the subject of revenue decline, MSWG is seeking answers from piling and foundation specialist Pintaras Jaya Bhd on the latter’s 21% dip in manufacturing revenue to RM28.5 mil (while pre-tax profit contracted 58% to only RM1.7 mil) from the previous financial year.

In page 36 of its Annual Report 2020, Pintaras Jaya has attributed the drop to intense competition “amidst subdued demand and coupled with COVID-19” which made it challenging to be profitable.

Among questions related to revenue decline that will be posed by MSWG at the company’s AGM slated for Oct 28 at OWG in Glenmarie, Shah Alam at 10am are:

  • How will the Pintaras Jaya board address the lower revenue from manufacturing?
  • Given the above-mentioned situation, what is the outlook for Pintaras Jaya’s manufacturing to remain profitable in FY2021?
  • What is the latest capacity utilisation rates for Pintaras Jaya’s factories? What are the planned optimal utilisation rates that the Group expects for the factories in FY2021?

Elsewhere, MSWG is also querying Eurospan Holdings Bhd which have been in a loss making position for the last three financial years as to what are the strategies to bring the company back to profitability.

For its financial year ended (FYE) 2020, the furniture manufacturer has narrowed its net loss to RM2.49 mil from RM3.95 mil in FYE 2019.

Europsan will stage its AGM at Hotel Equatorial in Bukit Jambul, Penang on Oct 27 at 10am.

Click here for a complete list of questions that MSWG seeks to raise at companies’ AGMs for the week of Oct 26-30. – Oct 23, 2020

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