The following table sets out the financial highlights based on the combined statements of profit or loss and other comprehensive income for FYE 2020 to 2023:
Major Customers
The major customer for FYE 2023 is as follows:
The top 5 customers contributed 15.0% of the revenue. The company is not dependent on any of its major customers. This shows that management has well diversified its customer base to avoid high-concentration customer risk.
Major Suppliers
The top 5 major suppliers for FYE 2023 as follows:
The top five suppliers account for 52.5% of the purchases. Management mentioned that although they mainly source tapioca starch from Chaodee Group Companies, they are not dependent on Chaodee Group Companies for the supply of tapioca starch, as it is readily available and can be easily sourced from other suppliers in the market. Furthermore, management emphasizes that the group is not dependent on any single supplier, as they are able to source products from other suppliers.
According to Smith Zander's research, Agricore CS Group primarily deals with plant-based agricultural food ingredients, focusing on pulses, legumes, flour, and starches. The food ingredients industry in Malaysia, excluding other categories like fruits, vegetables, and certain grains, grew from RM6.43 billion in 2020 to RM9.15 billion in 2023, with a CAGR of 12.48%. It is forecasted to grow to RM10.18 billion in 2024.
The pulses and legumes segment grew from RM1.57 billion in 2020 to RM2.47 billion in 2022 but declined to RM2.25 billion in 2023. It is expected to recover and grow to RM2.42 billion in 2024. The flour and starches segment grew from RM4.86 billion in 2020 to RM6.90 billion in 2023 and is expected to reach RM7.76 billion in 2024.
The food additives industry, measured by the sales value of distilled monoglyceride, grew from RM655.62 million in 2020 to RM1.02 billion in 2022 and is expected to reach RM1.18 billion in 2024.
Key Industry Drivers
Key Industry Risks and Challenges
Source: Smith Zander
The business objectives are to maintain sustainable growth and create long-term shareholder value. To achieve the business objectives, the company will implement the following business strategies over the period of 12 months from the date of the Listing:
Opportunities
Risk
Click here to refer the IPO - Agricore CS Holdings Bhd (Part 1)
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