DEAR SHAREHOLDERS,
On behalf of the Board of Directors,
I have the pleasure of presenting to
you the Annual Report and Audited
Financial Statement of PeterLabs
Holdings Berhad for the financial
year ended 31 December 2013.
This is our third annual report since
PeterLabs Holdings Berhad was
listed on the ACE Market of Bursa
Securities on 26 July 2011.
OVERVIEW
PeterLabs Holdings Berhad was successfully listed on the ACE Market of
Bursa Securities on 26 July 2011. The Company is principally involved in the
manufacturing, distribution and trading of animal health and nutrition products
which include animal feed additives, environment maintenance products,
veterinary pharmaceuticals and biological products.
The local swine and poultry industry has always been operating in a very
competitive environment. The uncertainties of the world prices of commodities
will have a direct impact on the price of feed. The market demand was also
affected due to the instability of the price in poultry and swine.
However, the Group continued to bear the amortisation of the capital expenditure
in Good Manufacturing Practice (“GMP”) compliant manufacturing plant while
the plant was operating less than its optimal production capacity. Despite the
above, the Group continued to invest in exploring overseas market.
FINANCIAL PERFORMANCE
The Group’s performance for the financial year 2013 ended with a recorded revenue
of RM50.31 million, representing a growth of 9.13% as compared with financial
year 2012. The Group has witnessed an increase in revenue from contributions
made by its new accounts from Bangladesh and the Philippines.
The Group has recorded a profit before tax (“PBT”) of RM3.16 million and a profit
after tax (“PAT”) of RM2.01 million. The resulting defi cit of RM0.73 million in
PBT was due to an increment of manufacturing expenses in the manufacturing
plant, distribution cost in East Malaysia, travelling and promotional expenses in
promoting the Group’s products to overseas market and the currency fluctuation
in USD. This resulted in a drop in the gross profit margin percentage from 24.58%
to 21.12%.
The significant increase of RM1.02 million in tax expenses in the year 2013 was
due to the recognition of deferred tax of RM1.0 million for the unutilised tax
allowances by a subsidiary in the year 2012.
DIVIDEND
On 31 December 2013, the Group had declared an interim single tier dividend of
0.3 sen per share, representing a payout ratio of 28.09% of PAT for the Group for
the financial year ended 31 December 2013. The dividend was subsequently paid
to shareholders on 14 February 2014. The Group did not recommend any final
dividend for the financial year ended 31 December 2013.
OPERATIONS REVIEW
In 2013, we had penetrated into additional newly developed export countries
like Singapore and the Philippines in addition to our previous ventures with
Indonesia, Brunei, Taiwan, Cambodia, Pakistan, Nepal, Bangladesh and Thailand.
We are focused to expand and strengthen our core business for better economies
of scale as we aim to position the Group in a more competitive position to be at
the forefront of all achievements.
FUTURE PROSPECTS
The Group has aligned its goals to focus on the manufacturing, distribution and
trading of animal health and nutrition products. We seek to further develop in
the current market and pursue increased market share in the export market. Our
next step is to develop our business segment into the aquaculture and ruminant
sector. We will also continue to obtain GMP compliance to achieve higher quality
standards for all our products.
CORPORATE SOCIAL RESPONSIBILITY
We took a strategic approach to further built our brand and customer trust.
Continually, we are committed in being socially responsible. With utmost
respect, we have showcased our concern towards the community that we live
in and work.
Towards an approach for sustainable growth, we have contributed to the
Federation of Livestock Farmers Association of Malaysia, donations to primary
and secondary schools’ education fund and charity fairs.
We have also gathered all of our employees for training programmes, which are
specifi cally designed to enhance and upgrade our employees’ work skills. We
have set forth to further encourage interaction and to promote teamwork within
our community.
CORPORATE GOVERNANCE
To ensure transparency, accountability and protection of shareholders’ interest,
the Board places great importance in ensuring that the highest standard of
corporate governance is practiced throughout the Group. Our statement on
Corporate Governance and related reports are on pages 11 to 20.
ACKNOWLEDGEMENT
The success and growth that we have gained today, could not have been
achieved without the help of some very important people. I would like to thank
everyone who have helped and supported the Group.
First and foremost, I would like to take this opportunity to express my sincere
appreciation to the management and staffs who have conveyed the spirit of
commitment, dedication, contribution and loyalty towards the Group.
I am also thankful for the constant support from all our shareholders, valued
customers, business associates, bankers, government authorities and regulatory
bodies, who have helped the Group to stand tall today. Their trust and confidence
in us is held in high regard. They are the pull factor and a true inspiration for the
Group to work towards achieving higher performance.
Dato' Hon Choon Kim
Independent Non-Executive Chairman
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