KUALA LUMPUR: Auro Holdings Bhd is planning to diversify into the food and beverage (F&B) sector, expanding its portfolio to include the renowned Heytea franchise.
This move is in line with the company's vision to enhance financial performance through diversified revenue streams and capitalise on the growing demand in the F&B industry.
Auro has entered into multiple franchise agreements with HK Heycha Limited, enabling it tooperate Heytea stores across Malaysia.
The first Heytea store was launched at The Exchange TRX Mall in December 2023, followed by additional openings in prime locations suchas Mid Valley Megamall, Sunway Pyramid, and 1 Utama. Looking ahead, Auro plans to open more HEYTEA stores across Peninsular Malaysia, includingnew locations at Genting Highlands Premium Outlets, Sunway Velocity Mall, and Gurney Plaza.
These expansions are poised to contribute substantially to the company's net profits and overall revenue growth.
Auro Holdings executive director Tan Wye Chuan said the diversification into the F&B sector represents a strategic move to harness the huge opportunities within this industry.
"The positive reception of our initial stores underscores the potential of this venture. We are confident that our expansion will drive substantial revenue growth and enhance our market presence."The diversification also anticipate to improve Auro's financial performance which aligns with ourvision of building a more resilient and growth-oriented company. "We are committed to deliver sustainable value to our shareholders. The success of this diversification is underpinned by the expertise of Auro's key management team," he said.
He added that the outlook for Malaysia's F&B industry is promising, with positive growth forecasts supported by strong domestic demand and vibrant tourism activities.
"The F&B sector is expected to grow steadily, offering a stable and consistent revenue stream. According to market research, the F&B industry in Malaysia is projected to grow by 7.9 per cent in 2024, driven by increasing disposable income and the revival of tourism. "This growth presents a significant opportunity for Auro Holdings to capture a larger market share in the F&B sector," added Tan.