LATEST NEWS, CORPORATE Yee Lee sees beverage revenue doubling with Red Bull

by **Cals** Tue 06 Oct 2015, 02:03

LATEST NEWS, CORPORATE

[size=28]Yee Lee sees beverage revenue doubling with Red Bull

By Esther Lee / theedgemarkets.com | October 5, 2015 : 5:53 PM MYT

KUALA LUMPUR (Oct 5): Yee Lee Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 1.00) expects revenue derived from its beverage segment to double, with the addition of its exclusive right to distribute Red Bull energy drinks in Malaysia.

“The addition of Red Bull is expected to double the group beverage [segment] revenue. As for profits, we don’t know how much it will contribute yet, but it would definitely contribute positively to Yee Lee’s future profits,” its group chief executive officer Lim Ee Young told a press conference that was held to announce the successful transition of distribution services of Red Bull energy drinks in Malaysia today.

Currently, Yee Lee distributes Spritzer and Cactus brand bottled water. Spritzer and Cactus brands are bottled bySpritzer Bhd ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 1.40).

Yee Lee’s 32.69% associated company, Spritzer, raked up a total revenue of RM253.67 million for its financial year ended May 31, 2015.

Meanwhile, Yee Lee’s segment report for the cumulative six months ended June 30, 2015, showed that its associated company Spritzer contributed RM4.57 million to the former’s bottom line.

The bottled water segment is categorised under its trading division. Within its trading division, Yee Lee also distributes other agencies' products such as Campbell brand and Old Town products, as well as edible oils.

Red Bull's exclusive agent Allexcel Trading Sdn Bhd's general manager Charles Wong said the company is targeting to sell five million cartons — 24 cans per carton — of Red Bull energy drinks this year.

Yee Lee was appointed by Allexcel to distribute and sell the Red Bull Gold, Red Bull Less Sugar and Red Bull Bottle energy drinks in Malaysia for a period of five years, beginning Aug 1, 2015.

Yee Lee's shares closed up 4.73% or 8 sen at RM1.77 today, bringing it's market capitalisation to RM311.04 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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