Bernas allocates RM250 mln for capex

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KUALA LUMPUR: Padiberas Nasional Bhd (Bernas) has set aside RM250 million for capital expenditure (capex) this year.

Managing director Bakry Hamzah said RM150 million would be for capacity expansion, to upgrade existing mills and to build new warehouses, while the balance was for acquisitions of ricerelated businesses in the country.

“Our strategy going forward is to have strong participation in the retail market by controlling 50 per cent of the paddy and retail markets respectively,” he told reporters after the company’s annual general meeting here yesterday.

He said the company spent RM56 million for capex last year and managed to improve its local paddy market share to 32.2 per cent from 30.8 per cent in 2009.

For the financial year ended Dec 31, 2010, the company’s pre-tax profit rose to RM186.2 million from RM179.5 million a year earlier despite a lower revenue of RM3.17 billion compared with RM3.26 billion in 2009 due to lower prices.

Its total dividend payout for the 2010 financial year is a record 30 per cent. — Bernama