ABOUT THE COMPANY
Super Coffeemix Manufacturing (Super) was founded in Singapore in 1987 by Mr TeoKee Bock, Mr Te Kok Chiew and Ms Te Lay Hoon. Its principal activities aremanufacturing and managing its own brands of instant beverages and food products.Super was listed on Sesdaq in July 1994 and upgraded to the Mainboard in February1998.Currently, Super is preparing for the listing of Taiwan Depository Receipts (TDRs)representing an aggregate of up to 30m new ordinary shares in the company on theTaiwan Stock Exchange (TSE). The new issuance may lead to an EPS dilution of notmore than 5.2%. As TDRs are non-fungible in nature, there will not be arbitrageopportunity between Super’s TDRs and ordinary shares. However, should the TDR listinggo through, Super will have another equity fund-raising channel going forward.
Figure 1: Board and Major Shareholders
Board Designation No. of Shares ('m) %
Teo Kee Bock Chairman/ MD 65 12.11%Goi Seng Hui Vice Chairman/ Non-exe director 90 16.80%Te Lay Hoon Exec director 68 12.57%Te Kok Chiew Exec director 54 10.00%
Other Major Shareholders
YHS Investment 65 12.10%CIM II Limited 39 7.30%
Total Number of Shares 538
Source: Company 2009 AR
Super has 300+ products ranging from instant coffee, cereals, canned drinks, instantnoodles to non-dairy creamers. These products are sold under its own brands includingSuper, Owl, Café Nova, Super Power and Coffee King. Revenue breakdown by its twokey divisions is Branded Consumer Goods – coffee (67%), cereal (9%), and others(13%); Ingredient Sales – non-dairy creamer (7%) and soluble coffee powder (3%).
Super operates 13 manufacturing facilities in Singapore, Malaysia, China, Myanmar andThailand. Its facilities are ISO9001, ISO22000 and HACCP certified, and have acombined annual production capacity of 10,000 tonnes for soluble coffee and 50,000tonnes for creamers. Currently, it is the only company in the region with manufacturingcapabilities for instant soluble coffee, cereal flakes and non-dairy creamer. Averageinventory turnover is around 120 days.
Super distributes its products directly or through 3
party distributors to 52 countriesworldwide. Its key markets are Singapore (est. 12% of revenue), Malaysia (13%),Thailand (30%), Myanmar (16%) and China (12%), based on its receivables breakdown.Average trade receivables turnover is around 80 days.
Raw materials include robusta coffee bean, sugar, and palm oil, which collectively makeup 75% of its cost of goods sold. Other cost components include packaging (15%) andoverhead (10%) costs. Average trade payables turnover is around 50 days.