FamilyMart starts work on third fresh food plant

By Amy Su  /  Staff reporter

Thu, Jun 20, 2013 - Page 14

Taiwan FamilyMart Co (全家便利商店), the nation’s second-largest convenience store operator, yesterday broke ground for its third fresh food plant in Hsinchu County.

With an investment of NT$1.26 billion (US$42.06 million), the plant in Sinfong Township (新豐) is expected to start mass production in the third quarter next year and create 250 job opportunities, Taiwan FamilyMart said in a statement.

“The strong growth in the nation’s dine-out market prompted the company to accelerate the pace of building new fresh food plants,” company chairman Pan Chin-ting (潘進丁) said in the statement.

Taiwan FamilyMart expects to raise the fresh food sector’s contribution to company revenue this year to 15 percent.

Revenue from sales of fresh food last year reached more than NT$8 billion, accounting for 14.8 percent of overall sales.

The company also expects to increase the total number of FamilyMart stores to 2,900 by the end of the year, with 90 percent of the stores expected to have seating areas to boost sales of fresh food.

The company is scheduled to hold its annual general meeting tomorrow, where shareholders will vote for the company’s plan to distribute a cash dividend of NT$3.1, which translates into a dividend yield of 2.18 percent based on its closing share price of NT$142 yesterday.

SinoPac Securities Investment Service Co (永豐投顧) said in a note yesterday that FamilyMart could see net profit grow this quarter and next, bolstered by sales of cold drinks, which offer higher gross margins of about 40 percent, during summer time.

The company posted a net profit of NT$108.65 million, or NT$0.49 per share, in the first quarter, compared with NT$57.24 million, or NT$0.26 per share, a year earlier.

SinoPac forecast earnings per share of NT$4.74 this year for Taiwan FamilyMart, up from NT$3.83 last year, on the back of its strategy to raise the number of outlets with seating areas, as well as lower-than-expected losses at its Chinese subsidiaries.