It has allocated rm40 million to increase its production capacity, half of which will spend the remaining rm20 million to upgrade and expand its factory lines in the first quarter of 2009.
It started out as a general tin can maker in the 1960s. The company ventured into the manufacture of food products like sweetened condensed milk and sweetened beverage creamer in 2006. It also grew its production of jerry cans over the years to make up 31% of its total revenue in 2007.
The company’s food product division only produced an operating margin of 2.65% whereas the operating margin for the general can business stood at 7.31%.
The company’s expansion plan thus offers food for thought since the bulk of the investment is going into growing its food product division.
A portion of its growth plan is devoted to producing the BIB, a new packaging product on the local scene.
Financial Results …
As at Sept 30, 2008, Can-One’s gearing stood at relatively high 1.4 times. It is worth nothing that 81.31% of its total debts are short term in nature. Its long term debts of Rm49.90 million are 4.8 times.
Its 9MFY2008 net profit of RM10.28 million.
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