Sales picking up again for Focus Point
KUALA LUMPUR: Sales are beginning to pick up for eyecare player Focus Point Holdings Bhd (Focus Point) after a spate of movement control orders (MCOs) across the country which resulted in lower foot traffic in retail areas in October and November, impacting its optical division.
However, management have guided that sales have begun to pick up in Dec due to year end festive season.
The team at Hong Leong Investment Bank Bhd (HLIB Research) said seasonally, the fourth quarter (4Q) is Focus Point's strongest quarter as the optical division receives rebates from its major suppliers for meeting sales targets for the year.
Meanwhile, Focus Point's new product offerings continue to be a smashing success with their largest corporate client, who continues to grow their outlet count and order more stock keeping unit (SKU) varieties.
“We understand their newly launched macarons were very well received by consumers, with
Focus Point resorting to diverting volumes from their own Komugi bakery outlets to their largest corporate client,” it said in a note yesterday.
“Their largest corporate client now accounts for RM1.3 million sales per month from under RM0.5 million per month in FY20.”
With increasing order volumes from existing clients and apparent interest from newer clients, HLIB Research said Focus Point's current central kitchen has reached maximum capacity.
“We believe the second kitchen will be able to generate about RM5 million per month from corporate sales at maximum capacity. The second central kitchen is estimated to have capex requirements of RM3.3 million and be operational by month end,” it said.
“Also, Focus Point is in the process of obtaining HACCP and ISO 22000 certifications. These certifications will allow Focus Point to supply baked goods to a wider array of clients locally as well as in Singapore.
“We feel positively about these certifications, as we understand there have already been enquiries from clients who have been interested in securing the products from FocusP's central kitchen.”
Currently, Focus Point operates a lasik and cataract operation centre in Mid Valley Megamall under subsidiary ‘Excelview'. The group intend to expand this business division by leveraging the expertise of their long term partner and medical professional at Excelview to open two more centres in second tier cities.
“After factoring in increased food and beverage (F&B) corporate sales, we raise our FY21/22 forecasts by 9.1 and 5.5 per cent.
“Increasing F&B corporate sales and starting of a second central kitchen should see profitability of the F&B division accelerate. Furthermore, we reckon the possibility of securing new F&B corporate clients is likely given the popularity of their current product offerings.”