January 16, 2004

Malaysia's Integrated Poultry Producer D.B.E Set For Expansion

D.B.E. Gurney Resources Bhd, one of the few integrated poultry producers in Malaysia, is set to open two more retail outlets, one in Ipoh, Perak and the other in Sungai Besar, Selangor, by the end of the year.

With seven integrated subsidiaries under its wing, D.B.E.¡¯s activities include poultry and livestock breeding, rearing and hatching of broiler chicks; operating slaughtering houses; processing and sale of poultry and its related products; and feedmill operation.

At present, the Perak-based company operates four outlets in Bandar Sunway, Wangsa Maju, Seri Manjung of Sitiawan and Bukit Mertajam.

Managing director Alex Ding Seng Huat said it plans to open more outlets in Peninsular Malaysia selling processed chickens.

Besides selling chickens and poultry-related products, the outlets also offer various kinds of meats, dressing and processed products like sausages, meatballs and other groceries.

For the first eight months of last year, 52 per cent of its revenue came from selling live chickens, 22 per cent from chicken feeds and others, 20 per cent from processed chickens and 6 per cent from day-old chicks.

"D.B.E. is one of the few integrated poultry producers in Malaysia and this enables us to maintain a low production cost and controllable quality," Ding said.

He said the company accounts for 20 per cent of broilers produced in Perak, and holds a 3 per cent market share in Malaysia.

"Thus, we still have a lot of room for growth," he added.
 

Ding said it plans to increase its Closed-House System for broiler houses to 43 houses by the first-quarter of this year, from 33 currently. The closed houses are equipped with the evaporative cooling system, automatic feeders and drinkers.

"Other plans include the expansion of feedmill and processing operations," he said.

Its estimated profit-after-tax for the year ended December 31 2003 is RM10.15 million on revenue of RM134.6 million.

The company forecasts a 18.95 per cent growth in after tax profit to RM12.08 million for the year ending December 2004, on RM133.4 million revenue.