DBE (7179) - DBE Gurney says three new poultry products to generate RM10mil in potential revenue

KUALA LUMPUR (Sept 12): DBE Gurney Resources Bhd is considering selling three poultry products — leg meat yakitori, gizzard yakitori and tail yakitori, sourced from Japan-based GDJ Co Ltd — to generate potential sales of around RM10 million.

Famous in Japan, yakitori are grilled chicken skewers made from bite-sized pieces of meat from various parts of the chicken, such as the breasts, thighs, skin, liver and other innards. It is usually made to order and cooked over charcoal.

DBE Gurney’s plan to source the three Yakitori products was formalised after it inked a Memorandum of Understanding with GDJ today, a trading firm controlled by its director Toshikuni Nozawa.

“Both parties will strive to enter into a formal supplier agreement once the terms and conditions are finalised,” DBE Gurney said in a filing with Bursa Malaysia today.

Once both parties ink a definitive supplier agreement later, the plan to sell the three poultry products is expected to generate approximately RM10 million in turnover with an “assured margin” for the next financial year ending Dec 31, 2017, DBE Gurney said.

“This augurs well with DBE Gurney’s intention to increase its market share locally and sustain its business competitiveness,” the Perak-based poultry firm added.

DBE Gurney said its board of directors, having considered all aspects under the MoU, are of the opinion that the plan to source the three poultry products is in its best interest.

It is worth noting that DBE Gurney is also supplying poultry products to KFC (Peninsular Malaysia) Sdn Bhd and QSR Stores Sdn Bhd, the operator of KFC restaurants chain in the peninsula.

Listed on the Main Market since February 2004, shares in DBE Gurney dropped 0.5 sen or 14.29% to close at 3 sen today, valuing the poultry processor at a market capitalisation of RM41.4 million.