Through its wholly-owned unit, Multiple Reward Sdn Bhd, Focus Point ventured into the F&B sector in 2012 via Komugi, an authentic premium Japanese bakery.

“The homegrown company is seeking to grow the F&B segment’s revenue contribution relative to its optical segment.

“With the current ratio of optical to F&B revenue at 80:20, there are more opportunities to grow the segment, perhaps shifting to a 70:30 or 60:40 ratio,” he told Bernama.

He said F&B is a relatively new segment at only about 11 years old compared with optical, which is celebrating its 34th year in business.

“In contrast to optical, where we are well-established, the F&B baseline is still modest and therefore offers opportunities for growth,” Liaw said.

The group had come a long way since the opening of its first Focus Point outlet in Muar, Johor, in 1989 and its listing on the Ace Market in August 2010. In January this year, it achieved a new milestone with the transfer of its listing to the Main Market.

On its plans, Liaw said the group has clear goals for both its optical and F&B businesses.

Comparing Focus Point’s optical segment and Komugi, he said there are about 190 Focus Point stores nationwide, whereas Komugi only has 12 outlets in the Klang Valley and one in Negeri Sembilan.

“The F&B sector is experiencing significant growth due to its small baseline, which allows for even faster and higher expansion.

“This presents immense opportunities for the business, particularly with the acquisition of corporate clients for Komugi and the pursuit of a stronger retail presence,” he said.

Liaw said the company’s goal is to achieve a balanced 50:50 revenue contribution from the corporate and retail sectors compared with the current ratio of 60% for corporate and 40% for retail.

He noted Komugi is currently supplying pastry products to large corporate customers including airlines, coffee-chain restaurants, cafes, convenience stores as well as supermarkets.

On top of that, Focus Point will also introduce a new brand concept focussing on frozen yogurt, with the first outlet to be opened in Mid Valley Megamall, Kuala Lumpur, next year.

Regarding capital expenditure (capex) allocation, Liaw said Focus Point designates an amount of between RM12 million and RM13 million for the optical segment, which is intended for the opening of new outlets or refurbishment of existing stores.

“We are looking at opening between 10 and 15 outlets for the optical segment next year,” he said.

As for Komugi, he said RM6 million to RM7 million is specifically set aside for the outlets.

“The capex allocation for F&B will be channelled towards new equipment and the upgrading of two central kitchens in Kota Damansara (Petaling Jaya), as well as the opening of maybe three to four new Komugi outlets,” he said, adding that the new outlets will be in the Klang Valley.

There are also about 20 Komugi outlets in the Philippines and two outlets in Brunei, which are operating under a master franchise licence.

Outlook for business in optical and F&B

Commenting on the company’s prospects for the year ahead, Liaw said the optical business remains vibrant as more people, including schoolchildren, are spending time on gadgets.

“Eyewear is now considered a necessity. With a lot of people spending time on gadgets and online classes, the prevalence of myopia spiked during the Covid-19 pandemic; and overall, the prevalence of myopia among Malaysians is increasing,” he added.

On the lower financial results for the first three quarters of this year versus in 2022, Liaw said last year’s performance was fuelled by optimism from the reopening of the country’s borders and more money floating in the market thanks to EPF’s special withdrawals.

Focus Point posted a net profit of RM19.67 million in January-September 2023 compared with RM25.4 million in the corresponding period last year.

To provide context, he explained that Focus Point achieved very high incremental business of close to 46% in the last financial year for both the optical and F&B businesses.

He said the RM248.82 million revenue generated in 2022 was among the highest for the group, with the optical segment contributing RM202.64 million (up 81% year-on-year) and the F&B segment contributing RM36.89 million (up 15%).

As at 4.19pm, Focus Point’s share price was unchanged at 73 sen, giving it a market capitalisation of RM337 million.