Company Profile Our Products Honorable Achivements Investor Relations Contact Us
 
 

A home grown Malaysian company, London Biscuits Berhad Group’s main business philosophy hinges on manufacturing and marketing cakes and snack food which score high in terms of product safety and quality. The company strongly believes that this is the only way to ensure the customer satisfaction and loyalty to the product and the brand it embodies.

London Biscuits’ individually packed and ready to eat products can be divided into 2 main categories namely:

  • Corn based snacks
  • Cake products such as Swiss Rolls, Pie Cakes and Layer Cakes

In addition, London Biscuits also manufactures range assorted chocolate confectionery including chocolate-coated peanuts and biscuits, pancake cookies, jelly and puddings, wafer sticks, cup sticks and snack noodles.

Some of the London Biscuits products are marketed under the popular brand names:

  • Lonbisco
  • London
  • Kinos
  • Gega
  • Caca
  • Mizu
  • Hiro

As a pioneer in the cake products segment locally, London Biscuits has fine-tuned the process of making cakes with long shelf life, of 8-12 months, without refrigeration.

London Biscuits products can be found in Malaysia and 65 other markets, worldwide. Its main overseas markets are China, Hong Kong, Macau, Indonesia, Singapore, Taiwan, Thailand, Vietnam and the Middle East.

London Biscuits Group strategy for growth is based on the following:

  • Core competency in manufacturing capability and technology- this underscores its commitment to adopting the latest technology in food manufacturing
  • Product range, innovation and quality-which ensures it brings the most relevant products to the right people (adults and children alike) at the right place
  • Effective and extensive distribution network – customized networks to suit the target market
  • Stringent adherence to HALAL standards and relevant international food safety regulations – which embodies its commitment to food safety to build trust in the company’s products

history

1981 Privately owned London Biscuits Sdn Bhd was established. Operating on a small scale with a few production lines, the company’s main business was manufacturing corn-based snacks from its rented factory premises in Tampoi, Johor. The company had 10 workers with a monthly turnover of RM20,000.
1993 The Liew family acquired the company; although he had no experience in the food manufacturing industry, the family patriarch, Dato’ Liew Kuek Hin, saw the potential of turning the company around to become a leading food manufacturer in Malaysia.

In establishing the company’s business strategies, the Liew family agreed that their guiding principle would be to ensure that London Biscuits products would always be safe for consumption by all consumers. In addition, London Biscuits should aim to maintain its market lead via technology driven R&D support. In putting the needs of customers first, the Liew family also stressed the need for its products to be fresh and made with quality ingredients.

The family business was given a shot in the arm when Dato’ Liew Yew Chung, the eldest son in the family, joined the business. Having obtained a Bachelor’s degree followed by an MBA from the US, Dato’Liew Yew Chung brought with him the necessary business principles and financial acumen to spur the company’s business.

Aided by a much needed cash injection and sound management practices, the entry of the Liew family brought new and progressive winds of change to the company.

1994 The subsequent eight (8) years proved to be a period of accelerated growth for the company, with revenue making a leap from RM500,000 to RM29 million. This good fortune was directly linked to the strategic decision made by the Liew family to expand the company’s business to include the cakes segment, which provided higher profit margins for the company.

London Biscuits also shifted manufacturing operations from the previous rented premises to its own new factory. Production and efficiency received a boost with the new plant and new automated machines; in addition, new products lines were added London Biscuits offerings.

Naturally, the growing popularity of London Biscuits products led to growth in its export customer base that grew from 38 to 50 during this period with a tandem increase in domestic customer base.

2002 In order to tap funds to expand the business and to establish a presence in the Malaysian corporate world, the company decided to initiate an Initial Public Offering on the Malaysian Stock Exchange. And so, London Biscuits Berhad was successfully listed on the Second Board of Bursa Malaysia Securities Berhad in January 2002.

With growing demand for its products, London Biscuits realized the need to strengthen its corporate image and reputation. In line with this the company signed a licensing agreement with Fun Character International, the licensing body of Disney Character in December 2002. The licensing rights received by London Biscuits included the right to use certain popular Disney characters on it product wrappers, a move meant to widen the appeal of the products amongst its widening regional market.

2003 As another indication of how the company had evolved into a dynamic corporate powerhouse, 18 months after its maiden listing on the Second Board, London Biscuits qualified for a listing on the Main Board; this transfer was successfully completed in September 2003.
2005 With revenue doubling between 2002-2005, London Biscuits was faced with the “happy problem” of facing an over demand for its products. It was then that the Board decided to take the calculated move of acquiring the business of an existing food manufacturing company. This would give London Biscuits immediate access to expand operations.

Thus, in May, London Biscuits Berhad undertook the acquisition of Kinos Food Industries Sdn Bhd, via a 77% stake in the company. The decision was made as Kinos, with its existing factory and food industry business, offered London Biscuits the perfect opportunity to increase production capacity, with minimal capital expenditure. The acquisition was completed with a cash payment of RM12.3 million. In November 2005, London Biscuits stakeholding in Kinos was further increased to 95.49%.

This major acquisition was a significant step in the continued growth of London Biscuits as it held unrealized potential in terms of synergized business between the two (2) companies. In addition, the take-over of Kinos became the required launch pad to strengthen the Group’s presence in the local and regional markets.

2006 and Going Forward  London Biscuits is currently enjoying continued strong demand for its products; its net profit rose 26.06% to RM14.5 million in the year ended June 30, 2006 from RM11.5 million in the previous year.

Revenue rose 31.4% to RM107.69 million from RM81.96 million previously after taking into account the full year contribution from Kinos.

Since London Biscuits took over Kinos, the company has increased production capacity utilization to 48.99% while the cakes segment recorded over 50% capacity utilization for the whole year.

Today, London Biscuits has six (6) factories operating at near full capacity in Ulu Tiram, Johor and Kinos has twon (2) factories in Pasir Gudang, Johor.

Going forward, London Biscuits Group continues to be guided by the business strategies laid down in 1993 that hinge on providing safe and trusted products to their various consumer groups.

 

 
  © 2004-06 London Buscuits Berhad. All Rights Reserved