BANGI: Greenyield Bhd expects non-plantation business to register better growth for the current financial year, following the diversification of its products.
The company also plans to step up efforts to expand its customer base globally to strengthen its financial position in the face of a challenging business environment.
Group managing director Tham Foo Keong said the company has identified growth opportunities including expanding its plant pots market reach to the US, Europe and Australia.
He said the company is in midst of developing new products such as tableware and home appliances using Artstone formulations that are being developed using other materials.
Greenyield develops, manufactures and markets agricultural systems, products and services based on agro-technology.
“Currently, the development of our tableware and home appliances products are still at research stage and we plan to produce these products early 2019 for the international market.
“We are also in midst of developing more value-added products in our plantation business such as fertilisers and bio-based sprays. The company will also enhance the brand and sales of products for the local market.
“Currently, 90 per cent of our non-plantation business are overseas and only 10 per cent are locals, while 70 per cent of company’s revenue are contributed by overseas market,” he told reporters after the company’s annual general meeting here today.
For its plantation business, Tham said the company remains optimistic of recovery in the commodity market, despite the slowdown in rubber segment for the financial year ended July 31, 2017.
He said the high demand from its customers in the US and Europe is also expected to boost the company’s revenue in the coming year.
In addition, Tham said the company also plans to expand its dominance in the plantation segment by entering the palm oil market over the next two to three years, in China and India.
During the financial year, the company posted lower revenue at RM30.67 million compared to RM37.30 million in the previous financial year.
Profit before tax also fell to RM560,000 as compared to RM3.63 million in the previous year.
Revenue in the plantation segment in financial year 2017 fell to RM15.92 million from RM16.49 million the previous year, while the non-plantation segment also decreased to RM14.75 million compared to RM20.81 million.
