Viz Branz

[valuehunter]

I was at Carrefour on Sunday evening and noted that Viz Branz's leading instant coffee product - the red-pack "Cafe 21" - is now being retailed at $4.40 a bag of 25 sticks, vs. $3.90 the last time I checked. And the shelf was empty last Sunday evening!

Noticed yesterday that retail prices of Viz Branz coffee (Cappa Roma, Cafe 21 , etc) have been raised at NTUC outlets as well. From shareholders' viewpoint, if Viz Branz has indeed raised its wholesale price to distributors/retailers, at least the company is doing something now to pass on some of the rising costs to consumers.

I guess we can expect similar actions from its competitors, if they have not already done so.

[valuehunter]

Shareholders will be glad to know that Viz Branz has declared an interim dividend of 0.5cents/share payable on 23 May.

[dydx]

Shareholders will be glad to know that Viz Branz has declared an interim dividend of 0.5cents/share payable on 23 May.

Yes, following the recent $0.0075/share Interim dividend paid on 15Apr11, this is another 'surprise' Interim dividend....
http://info.sgx.com/webcoranncatth.nsf/V...50028F63F/$file/BooksClosureDate.pdf?openelement

Assuming Viz Branz will also pay out the usual Final dividend for this FY11 (ending 30Jun11) [Note: In last FY10, a Final dividend of $0.0075/share was paid on 30Nov10), this means that there will likely be a total of 3 dividends for this FY11. Great!

[freedom]

Who has an idea what the reason behind the unfavourable inventory development of Viz Branz could be?

Here are the numbers.

inventory turnover the latest 12 months per

2. half 2007: 6,6
1. half 2008: 5,9
2. half 2008: 5,4
1. half 2009: 4,9
2. half 2009: 4,1
1. half 2010: 3,9
2. half 2010: 3,9

or similarily inventory to revenue of latest 12 months in per cent

2. half 2007: 10,1
1. half 2008: 11,5
2. half 2008: 14,8
1. half 2009: 15,2
2. half 2009: 15,6
1. half 2010: 16,7
2. half 2010: 18,1

The installment of the creamer facilities can't be a sufficient explanation, as this effect should have been vanished a year ago.

Has anybody experiences with Viz Branz referring the provision on information of this type when asked. Who was the contacted person and how was it done (e-mail, phone ...).

WEB-CM

I think the higher inventory turnover to revenue most likely due to higher raw material price and increase in stocking due to higher raw material price (company tends to stock more when price goes higher and higher).

[dydx]

Checked my bank account this morning and noted a very nice credit from Viz Branz's $0.005/share 2nd Interim dividend for FY11 (ending 30Jun11). Feeling great!

Also reviewed Viz Branz's recent announcements and thought the following 2 changes/events are worth noting....

(1) ID Tan Hwee Yong has taken over the AC Chairman role from ID Yuen San Seng, and the previous profit sharing incentive scheme for the EDs (in place since the company's listing on 22Jul02) has been scrapped on 27Apr11....
http://info.sgx.com/webcoranncatth.nsf/V...8002C8733/$file/Chg_AC_Chairman_Profit_sharing_inc.pdf?openelement
Logically speaking, assuming all things being equal, taking out the profit sharing incentive scheme for EDs should raise PBT by the same amount of profits payable to the EDs, and should also raise NP accordingly. A relevant question: Would this change lead to even higher dividend payout by Viz Branz, considering dividend payment has now become the only way the Chngs (as manager-controlling shareholder) can benefit directly from the group's recurrent operating profits?

(2) Viz Branz has on 12Apr10 bought out its Japanese partner's minority interests in the 2 PRC-based subsidiaries - Bridge Shine Coffee (Shanghai) Co Ltd, and Bridge Shine Coffee Equipment (Shanghai) Co Ltd - engaged in supplying roast and ground coffee, and coffee machines in the Shanghai region.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument
A relevant question: Would Viz Branz now push harder to grow this promising business in PRC? More info on Bridge Shine Group....
http://www.bridgeshine.com.cn/gsjje.htm

Meanwhile, it is also relevant to note that international coffee bean prices have so far - in the last 2+ weeks - fallen by a massive 11.9% from the historical peak reached on 3May11.....
http://www.ico.org/prices/pr.htm
This should simply mean less pressure for coffee roasters like Bridge Shine and Tsit Wing.

[dydx]

Interestingly, Ben Chng has resumed buying more Viz Branz shares. Per today's (2Jun11) announcment, he added a total of 98 lots on 31May11 and 1Jun11 at a low price of $0.265/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

Including the above purchases, Ben Chng now owns 178,306,144 shares - or a princely 50.1374% stake! - in Viz Branz.

[pianist]

at this rate, viz branz might need to be privatised soon..

[freedom]

that might not be good for long term shareholders as the offer might not be that great.

[pianist]

that might not be good for long term shareholders as the offer might not be that great.

i dun quite agree because this is a management-owners entity. If the offer is not great, it will also directly impact the owners in the same manner, i.e. minority shareholders' interest is somewhat assured by the owners' major stake in it.

[freedom]

if it really gets privatized, probably will be management buyout. how high could the offer be in your opinion? I don't think the management is that rich to make a high-priced GO.