STRATEGIC PARTNERSHIP: Photo shows Keurig brand coffee making machine. VS Industry is set to record higher contributions from its collaboration with Keurig Inc.
KUCHING: VS Industry Bhd (VS Industry), listed among the world’s top 50 electronic manufacturing services (EMS) providers, is set to record higher contribution from Keurig Incorporated (Keurig), a global pioneer and leading manufacturer of single-cup brewing systems.
Speaking at the company’s annual general meeting yesterday, managing director Datuk Gan Sem Yam said that VS Industry had steadily developed its business with Keurig.
“Since the opening of the dedicated manufacturing plant for Keurig Single Cup Brewers in November 2011, VS Industry has trekked commendable progress in working together with Keurig to bring high-quality brewers to the global market. In this respect, we have produced one model of brewer thus far for export to North America.
“Based on this, we are pleased that VS Industry has been further entrusted to manufacture another model of the Keurig Single Cup Brewer this year, which will also be exported overseas.
“This is certainly a positive step forward for our collaboration. With the uptrend in sales orders, we anticipate for Keurig to contribute approximately 10 per cent to group revenue in the financial year ended July 31, 2013.”
Through its manufacturing plants in Malaysia and Indonesia, VS Industry produces value-added products for customers from Europe, Japan, Australia and the US, including international leaders in vacuum cleaners, single-cup coffee brewers, touchscreen displays and so on.
Gan continued: “The higher sales orders from new customers such as Keurig are the positive results of our customer expansion initiatives.
“This is certainly timely for the group, especially in light of waning global demand from the ongoing economic uncertainty. Therefore, we are optimistic of the outlook in the EMS sector in the long term.”
“Mindful of the challenging year ahead, VS Industry will constantly keep a keen eye on enhancing our operational- and cost efficiency to sustain the group,” he concluded.
The company declared a first interim dividend of two sen per share in respect of the financial year ending July 31, 2013, which would be paid to shareholders on January 31, 2013. The dividend payout of RM3.6 million translated to 47 per cent of net profit.