KUB: A&W doesn't need white knight

PETALING JAYA: KUB Malaysia Bhd may not need a strategic partner to come to the rescue of its fast food business, A&W Malaysia, as it has managed to turn around the division on its own. According to managing director Datuk Wan Mohd Nor Wan Ahmad, A&W has returned to the black in the first quarter ended March this year.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=957505
Published: Jun 21, 2013

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2013/6/21/business/13268068&sec=business
Published: Jun 21, 2013

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/KUBKUB/Article/index_html
Published: Jun 21, 2013

“Cumulative profit up to May is about RM400,000 and if we can manage to do this on our own, then why should we dilute our stakes? This is a huge improvement from the RM4mil loss recorded in the same period last year.

“We also have a cash pile of about RM144mil that could be used for the expansion of A&W outlets at strategic locations, as well as for working capital for the group.

“We will also continue to further strengthen this business via a more effective management and operational skills,” he told the press after the company's AGM yesterday.

Wan Mohd Nor added that KUB was looking to open three to four more outlets next year in the Klang Valley as well as in Sabah and Sarawak.

“We are interested in standalone locations similar to our outlet in Petaling Jaya, which is doing quite well.

“We are also in the final stages of disposing our A&W Thailand to a Malaysian investor residing in Thailand,” he said without disclosing the value of the transaction.

From a group perspective, KUB, which is also involved in the energy, construction and palm oil businesses, was quite optimistic of being in the black for the whole of 2013.

For the first quarter of this year, KUB posted a pre-tax profit of RM1.25mil on the back of RM224.1mil in revenue.

This is an improvement from financial year 2012, where the conglomerate managed to reduce its pre-tax losses by 67% to RM16.8mil compared with 2011.

On its plantation business, Wan Mohd Nor said its subsidiary was on the right track to increase the group's land bank from 7284.34ha to 28,327.99ha by 2015.

“Where construction is concerned, as KLIA2's development is entering its final stages of completion, we are glad to finish the work on a timely manner. Once again, I assure that the delay in KLIA2 is not caused by KUB, and we are still undertaking the remaining 10% work.”