The revenue from contributed by "Red Bull" products for the financial period Oct 1, 2008 to Sept 30, 2009 was RM99.6 million, accounting for 18.2% of the group revenue.
The operating profit was RM870,00 or 14.7% of the group's operating profit during that financial period. The revenue and operating profits of YHS group for the same period were RM547.2 million and RM5.9 million respectively.
To recap, YHS announced on Jan 19 2010 the termination of a business alliance between its unit Yeo Hiap Seng Trading Sdn Bhd and Allswell Trading Pte Ltd for the sales and distribution of “Red Bull” products in Malaysia will take effect on 1 April 2010.
The alliance between Allswell and YHS Trading was formed in April 2005 where the latter was appointed by Allswell to distribute “Red Bull” products in Malaysia through its extensive distribution network. However, Allswell terminated the agreement after the parties failed to agree on new distribution terms.
As the group would continue to focus and place greater emphasis on building its own food and beverage products under the “Yeos” brand, the impact of the termination on the revenue and operating profits of the Group is estimated at 10.8% and 7.8% respectively, for the financial year ending Dec 31, 2010.
6 hours ago
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