Can-One says ‘can do’ for FY16

PETALING JAYA: The slowdown in the economy is expected to have a “slight effect” on the non-food segment, tin cans and food products manufacturer Can-One Bhd, however, the company is still positive over its financial performance in 2016.
“We see the demand for condensed milk and evaporated milk is stronger in Q1 and Q2, it should be positive in the second half of the year,” Can-One COO and executive director Marc Francis Yeoh Min Chang told reporters after the company’s AGM here yesterday.
The company registered a net profit of RM77.33 million in 2015, a 21.24% growth compared with the RM63.78 million in 2014.
It generates 60% of its revenue from the food division, the remainder from the packaging division.
“For 2016, our focus will still be on the food division, the packaging division will just support the food division in terms of tin can supply,” Yeoh said.
Can-One exports 60% of its products to overaseas markets covering the regions of Africa, Asia and Europe.
Last year, the company invested RM61 million on a capacity expansion plan at its Telok Panglima Garang plant, which saw an additional 20% production capacity that should start contributing this year.
Commenting on its balance sheet, CFO Khoo Kay Leong said that Can-One’s gearing level of less than one time is comfortable.
As at end-2015, the company had RM542.65 million in loans and borrowings compared with cash and cash equivalents of RM52.12 million.
“We are open to opportunities to pare down the gearing if any corporate exercise is to be done. The annual interest is RM20 million, but we’re still healthy,” Khoo said.
Meanwhile, Yeoh said Can-One is not in a hurry to sell its stake in its subsidiary F&B Nutrition Sdn Bhd despite having been approached by some parties, including Kumpulan Wang Persaraan (Diperbadankan), or KWAP.
“Nothing has been confirmed and firmed up, it’s just on an enquiry basis. We’ll look at all proposals, if the price and valuation offered is very attractive, then we might consider it,” he said, adding that no formal proposal offer has been received so far.
Yeoh noted that Can-One is unlikely to sell the entire stake in F&B Nutrition, which manufactures sweetened creamer and evaporated creamer.
On another note, when asked if the company is mulling any corporate exercise on its 32.9%-owned Kian Joo Can Factory Bhd, including increasing its shareholding level, Yeoh noted that the board has been in discussions on this, but nothing has been firmed up yet.