6 December 2012
By John Gilbert
Halal food and beverage (F&B) group Brahim’s Holdings Bhd says it could see up to RM200 million increase in revenue in 2013, thanks to its recent acquisition of 49% of Brahim’s-LSG Sky Chefs Sdn Bhd (BLSG) as well as contributions from food outlets at the new klia2 low-cost carrier terminal (LCCT).
Executive chairman Ibrahim Ahmad Badawi said the acquisition of the rest of BLSG from LSG Asia GmbH will allow the company to capture 100% of its revenue from next year. BLSG posted a revenue of RM171.4 million this year.
“As for the whole of Brahim’s, we expect a revenue increase of between RM150 million and RM200 million for next year,” he said yesterday at the company’s extraordinary general meeting (EGM) here, which approved the acquisition of BLSG.
Brahim’s is also expecting new revenue from its F&B division. Its 51%-subsidiary, Dewina Host Sdn Bhd, recently secured a contract to operate a premium food court as well as fast-food outlets at the klia2 LCCT.
The three-year tenancy of the 2,706 sq m food court will begin from May next year, with an option for the company to extend it for another two years. The premium outlet will offer Malaysian and international cuisine as well as fast food. It will be located at the international departure on the mezzanine level of the new terminal.
“Brahim’s is very much an airport-centric company and we have been in the airport catering business since Kuala Lumpur International Airport (KLIA) started 14 years ago.
“Through the tender process for the klia2, we have won two tenders, and we are hopeful that a substantial number of passengers coming into the terminal will patronise these restaurants,” Ibrahim said.
At the extraordinary meeting yesterday, Brahim’s obtained shareholders approval to complete the RM130 million acquisition of the remaining 49% shareholdings in BLSG, which was announced in May this year.
With the acquisition, Brahim’s also intends to become the world’s largest provider of halal inflight food, with eyes on potential customers from Muslim airlines.
“With this acquisition, we would have fully Malaysianised the operating company of the world’s largest halal flight kitchen, marking the accomplishment of a Bumiputera listed company in providing halal inflight meals catering to a multitude of over 30 international airlines out of KLIA and more significantly to its single largest customer, Malaysia Airlines [MAS],” Ibrahim said.
Brahim’s inflight catering services is operated out of BLSG’s 70%-owned subsidiary, LSG Sky Chef-Brahim’s Sdn Bhd, in which MAS has a 30% equity interest.
“We expect to be equally active in the coming year as Brahim’s now has a strong foothold in various halal F&B businesses.
“We are constantly looking out for new opportunities in halal-related businesses both in Malaysia, as well as overseas, in particularly Asia and the Middle East, and we are hopeful to conclude some of these transactions we are pursuing in the next financial year to sustain our growth momentum,” Ibrahim said.
He said Brahim’s aims to leverage on its globally recognised core competencies in inflight catering, F&B services and research and development capabilities to implement its growth strategy and gain market recognition as a global halal F&B company to achieve RM1 billion turnover in the next five years.