Focus Point Sets Sights On Boosting F&b Contribution To Revenue

By Harizah Hanim Mohamed

KUALA LUMPUR, Dec 26 (Bernama) -- Leading optical industry player Focus Point Holdings Bhd is eyeing to increase the contribution of its food and beverage (F&B) segment to group revenue over the next two years.

Focus Point, through wholly-owned unit Multiple Reward Sdn Bhd, ventured into the F&B sector in 2012 via Komugi, an authentic premium Japanese bakery.

President and chief executive officer Datuk Liaw Choon Liang said the homegrown company is seeking to grow the F&B segment’s revenue contribution relative to its optical segment.

With the ratio of optical to F&B revenue at 80:20 currently, he said there are more opportunities to grow the segment.

“We believe that the current ratio of 80:20 will undergo some adjustments in the coming year or two, perhaps shifting to 70:30 or 60:40,” he told Bernama.

He said F&B is a relatively new segment at only about 11 years old compared with optical, which is celebrating its 34th year in business.

“In contrast to optical, where we are well-established, the F&B baseline is still modest and therefore offers opportunities for growth,” Liaw said.

The group has come a long way since the opening of its first Focus Point outlet in Muar, Johor, in 1989 and its listing on the Ace Market in August 2010. In January this year, it achieved a new milestone with the transfer of its listing to the Main Market.

On its plans, Liaw explained that the group has clear goals for both its optical and F&B businesses.

Focus Point is strengthening its optical presence based on multiple demographic segments -- the Focus Point brand caters for customers of all age groups, Focus Point Signature offers high-end products, and Focus Point Outlet as well as Whoosh offer a wide range of designs at fixed and affordable prices.

The group has also recently launched Focus Point SightSavers, which Choon said is targeted at smaller second- and third-tier cities in the country such as Taiping and Muar.

Comparing Focus Point's optical segment and Komugi, he said there are about 190 Focus Point stores nationwide, whereas Komugi only has 12 outlets in the Klang Valley and one in Negeri Sembilan.

“The F&B sector is experiencing significant growth due to its small baseline, which allows for even faster and higher expansion. This presents immense opportunities for the business, particularly with the acquisition of corporate clients for Komugi and the pursuit of a stronger retail presence,” he said.

According to him, the company's goal is to achieve a balanced 50:50 revenue contribution from the corporate and retail sectors compared with the current ratio of 60 per cent for corporate and 40 per cent retail.

He noted Komugi is now currently supplying pastry products to large corporate customers including airlines, coffee-chain restaurants, cafes, convenience stores as well as supermarkets.

On top of that, Focus Point will also introduce a new brand concept focusing on frozen yogurt, with the first outlet to be opened in Mid Valley Megamall, Kuala Lumpur, next year.

Regarding capital expenditure (capex) allocation, Liaw said Focus Point designates an amount of between RM12 million and RM13 million for the optical segment, which is intended for the opening of new outlets or refurbishment of existing stores.

“We are looking at opening between 10 and 15 outlets for the optical segment next year,” he said.

As for Komugi, he said RM6 million to RM7 million is specifically set aside for the outlets.

“The capex allocation for F&B will be channelled towards new equipment and the upgrading of two central kitchens in Kota Damansara (Petaling Jaya), as well as the opening of maybe three to four new Komugi outlets,” he said, adding that the new outlets will be in the Klang Valley.

There are also about 20 Komugi outlets in the Philippines and two outlets in Brunei, which are operating under a master franchise licence.

Commenting on the company’s prospect for the year ahead, Liaw said the optical business remains vibrant as more people, including schoolchildren, are spending time on gadgets.

“Eyewear is now considered as necessity. With a lot of people spending time on gadgets and online classes, the prevalence of myopia spiked during the COVID-19 pandemic; and overall, the prevalence of myopia among Malaysians is increasing,” he added.

On the lower financial results for the first three quarters of this year versus in 2022, Choon said last year’s performance was fuelled by optimism from the reopening of the country's borders and more money floating in the market thanks to the Employees Provident Fund special withdrawals.

Focus Point posted a net profit of RM19.67 million in January-September 2023 compared with RM25.40 million in the corresponding period last year.

To provide context, he explained that Focus Point achieved very high incremental business of close to 46 per cent in the last financial year for both the optical and F&B businesses.

He said the RM248.82 million revenue generated in 2022 was among the highest for the group, with the optical segment contributing RM202.64 million (up 81 per cent year-on-year) and the F&B segment contributing RM36.89 million (up 15 per cent).

-- BERNAMA