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Executive Summary 

This report is to analyze the financial and non-financial performances of Apollo Food
Holdings Bhd (APOLLO). Apollo Food Holdings Bhd (APOLLO) is a leading manufacturer of
the Chocolate Confectionery Products and Layer Cake industry.In our report, we indicated
that Apollo is able to generate profit for the shareholders and it’s a profitable
business.However, this is not a confirmed prediction as many factors could drastically
change Apollo ability to generate profit. Apollo should keep on improving to produce new
products to attract customers to purchase their products. The liquidity ratios shows that
Apollo definitely able to cover up their short-term liabilities with their net operation cash and
able to earn huge amount of cash in short-period of time. This indicated that Apollo have
improve their management over inventory as well as financially. This is why Apollo can
produce many products that can satisfy adult and children.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contents 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Introduction  
This report is to analyze the financial and non-financial performances of Apollo Food
Holdings Bhd (APOLLO). By analyzing Apollo’s current, past, and future financial and
non-financial performances, investors will see the overall performance of Apollo compared to
other food company. The analysis will focus on the firm annual reports and its’ external condition,
like its’ macro-environment, which will show investors if Apollo is a profitable food company to
invest.
 

Company History & Background 

  In Malaysia, Apollo Food Holdings Bhd (APOLLO) is a leading manufacturer of the


Chocolate Confectionery Products and Layer Cake industry. On 5​th​ March 1994, under the
name to Apollo Food Holdings Sdn Bhd was incorporated as a private limited company. It
converted into a public company and changed name to Apollo Food Holdings Bhd on 8​th
September 1994. Liang Chiang Heng is the executive chairman and managing director of
APOLLO.

APOLLO involves in the production and trading in chocolate confectionery products


and cakes and Hap Huat Industries Sdn Bhd which is based in Malaysia and has an
investment holding management companies with subsidiaries include Apollo Food Industries
(M) Sdn Bhd. It is engaged in distribution, manufacturing and sale of compound and
confectionery chocolate products as well as cakes. ​(Paradise, 2013)

The Location Of The Company 

The headquartered of APOLLO is in Johor Bahru, Malaysia and the Keynote Capital
Maldives is a subcompany. ​(Paradise, 2013)​ The location of the Apollo Food Holdings is
APOLLO FOOD HOLDINGS BERHAD (291471-M) ,No. 70, JALAN LANGKASUKA, LARKIN
INDUSTRIAL AREA, 80350 JOHOR BAHRU, JOHOR, WEST MALAYSIA. P.O. BOX 90, 80710
JOHOR BAHRU. JOHOR. WEST MALAYSIA. ​(BERHAD, 2009)
 

The Shareholders 

Name Equities %
Keynote Capital Sdn. Bhd. 41,048,415 51.30%
Permodalan Nasional Bhd. 14,950,000 18.70%
(Börse: Aktien, Kurse und Nachrichten, 2016) 

Form of business 

The type of business entity to the Apollo Food Holdings BHD is the type of public
corporation. The product Apollo sold can categories into two type which are Chocolate Wafer
products and Layer Cake, Chocolate Layer Cake and Swiss roll products. The Apollo Food
Holdings Bhd had sold their product to mostly Asia country, Middle East, Mauritius, and
Maldives. (Annual Report 2015, 2015). Kids are the major target audience. The sales or
revenue to this company is about 212.63 million last year. Apollo has 80,000,000
outstanding share (Apollo Food Holdings Bhd, 2016).

Mr. Liang Chiang Heng is the Executive Chairman of the Apollo Food Holdings Bhd,
at the same time he also as the Managing Director. Mr. Liang Chiang Heng was in charge as
Managing Director on 20 March 1996. Two year later, on 21 July 1998 he had appointed as
Executive Chairman. He was work at Apollo Group in 1979. Due to his good leadership, the
group’s business has increase and amplify within the short period of time. (Apollo, 2016)

​Objective of the Apollo Food Holdings Bhd.  

The objective of the Apollo Food Holdings Bhd is to always satisfy the customer’s
needs and demand by using the latest equipment and technology (Apollo Food 2009) .

Vision and mission of Apollo Food Holdings Bhd.  


  The vision and mission of Apollo Food Holdings Bhd is to produce the products with
the highest quality of raw and packaging materials. Apollo are using world class
manufacturing machinery and continuing upgrade to improve to remain competitively.

Main rivals or competitors 

The competitors of Apollo Holding Berhad including Hwa Tai Industries Berhad, Hup
Seng Industries Berhad , Julie’s Biscuits , Kraft foods Manufacturing Malaysia Sdn Bhd. food
industries produce similar types of food such as layer cake, biscuit, and swiss roll. (Azmi,
2014)

Macro-environment

Political

Malaysia is a multi-party democracy country. The ruling Barisan Nasional party has been in
power over 25 years. (This fact provided the country with a high degree of stability, which is
important factor for businesses investing in the country.) Corruption does exist in the
country. (This fact may become a barrier to foreign businesses as it adds to firms costs and
can cause problems). Transparency International ranks Malaysia 47th of 180 countries in its
Corruption Perceptions Index.

Economic

Malaysia’s main attraction as a location for business is its vibrant economy. Over the last 10
years, economic growth has averaged 7% per year. This rate of growth has lead to a large
increase in consumer incomes and therefore demand, which has attracted retailers such as
IKEA, Tesco and Carrefour. Malaysian location makes it ideally placed to engage in
international trade. Exports account for 37% of Malaysia’s GDP and the country achieves a
healthy current account surplus.

Social
The Malaysian population consists of 60% Malay, 30% of Chinese and 10% of India. It gives the
country enriched and vibrant culture. This also changed this buying pattern of Malaysian.

Technological

In 2015, Malaysia had 20.6 million internet users which indicates that ICT market has strong
growth fundamental. This may change consumer buying trends due to technology

Financial Performance Analysis 

Profitability ratios 

2012 2013 2014 2015 2016

Return on 10.27% 14.44% 14.13% 10.28% 11.76%


equity (ROE)

Return on 12.06% 17.13% 16.58% 12.52% 14.37%


assets (ROA)

Return on
capital 12.28% 17.16% 16.78% 12.96% 14.77%
employed
(ROCE)

Net profit 14.26% 19.06% 19.76% 16.02% 19.23%


margin

Gross profit 22.48% 28.11% 29.06% 26.48% 27.39%


margin
Table 1 : Profitabiliy

Profitability ratios focus how successfully Apollo generating their wealth. From the table
above, ROE, ROA, and ROCE stand out as the ratios that have a distinct changes
compared to the net and gross profit margin. ROA and ROCE reflect the ability for Apollo to
maximize their profit, and the results have indicated that there are slightly changes in every
year. However, in year 2013 and 2014,Apollo has the highest ROA and ROCE. They have
been improving this aspects in year 2016. ROE is the major ratio that investors should focus
on as this reflect the shareholder’s profits, and the data shows that Apollo has been
producing more profits for shareholders in year 2013 and 2014. In 2015, Apollo generated
the lowest profit for the shareholders in these few years. However, they have been improving
in 2016.These ratios provide a general positive sign for the firm because they reflect that the
firm is growing financially, especially as shown by the drastic increase in net profit in year
2013 and 2014.

By looking at the data, there’s a observable pattern among these ratios. There’s an
increased throughout 2012 to 2014. However, there’s a noticeable decreased pattern from
2014 to 2015. Furthermore, the ratios increased from 2015 to 2016. The pattern indicated
that Apollo is able to generate higher profits in the future years.
Liquidity ratios 

2012 2013 2014 2015 2016

Current ratio 13.54 : 1 13.77 : 1 13.70 : 1 12.55 : 1 13.56 : 1

Acid test 11.26 : 1 11.48 : 1 11.70 : 1 10.79 : 1 11.98 : 1


Ratio

Cash flow 3.69 : 1 3.57 : 1 4.71 : 1 3.10 : 1 3.17 : 1


from
operation

Table 2 : Liquidity

Liquidity ratios is the ability of Apollo to meet short-term obligations. From the ratios above,
Apollo definitely have the capability of meeting their current liabilities. Apollo had good
performance in current ratio and acid test ratio in these few years. This indicated that Apollo
had higher current assets compared to current liabilities. Therefore, Apollo was able to cover
up their short-term liabilities.
Apollo was able to manage their cash flow from operating ratio. They were able to generate
huge amount of cash from year 2012 to 2016.

By looking at the data, there’s not much differences in ratios between year 2012 to
2016.However, there’s a decline from 2014 to 2015.Furthermore, there’s an increased from
2015 to 2016. This indicated that Apollo have manage their assets well and have improved
financially.

Non financial information 

Apollo competitive advantage 

Apollo Food Holdings Berhad is market a tangible product. They maintain the quality
of the product as the customer will appraise them so that both side will get benefits and
satisfaction.

Apollo Food Holdings Berhad get to choose to market the product in which pricing
method like Price skimming, penetration, competitive pricing or others method. (WorldWide
company profile, n.d.)

Furthermore, they also applied the marketing mix of 4Ps strategic. (Products, Price,
Place and Promotion). Apollo Food Holding Berhad have produce a lot of types of products
to in order to develop their market such as layer cake, swiss roll and biscuit. They also
distributes its products in Malaysia and other overseas market (Financial Times, 2016).
Apollo is considered as at maturity stage in terms of Products Life Cycle (PLC). (Farooq,
2011)

Competitors competitive advantage 

Hwa Tai Industries Berhad is the biggest competitor for Apollo Food Holdings Berhad
as Hwa Tai Industries Berhad is one of the premier and longest established biscuit
manufacturers in Malaysia. Established in 1962 and listed on the Stock Exchange Malaysia
in1992. Since then, this fast expanding company has grown to be one of the largest players
in the biscuit industry in the country and produce a fine, wide range of superior quality
biscuits. (Azmi, 2014)

The strengths of Hwa Tai Industries Berhad is experienced business units


and also having a high profitability and revenue. The weaknesses is it owning a small
business units and having a competitive market. Furthermore, Hwa Tai Industries Berhad
also having the opportunities of a constant increase of income level, global markets and
venture capital. The threats of the industry is price changes, tax changes and rising costs of
raw materials. (SWOTanalysis24.com)

SWOT Analysis of Apollo 

Strengths: Weaknesses:

- High profitability and revenue - The Apollo products not well known in
Western countries
- Had accredited with HALAL
- Choices of products are limited
- Uses world class manufacturing
machinery from Europe - Many competitors in the market

Threats: Opportunities:

- Intense Competition - New product

- Rising Cost of Production Cost - Income level at a constant increase

- External Business Risk - Provide a new service

 
 

Conclusion 

The Apollo Food industries Holdings is producing wafer product, Swiss roll products
and Layer cake products to the customers. Its high quality and innovative of the products
help it to grow and keep itself a place in the market. The products of Apollo is considered as
convenience products. For example, nowadays people are busy to earn money that they
don’t have the time to eat. The Apollo products which packaged in a packet offer people to
bring it conveniently and eat whenever they want. While business is going on, the
advertisement and promotion is started. This can give more information of the products to
the public and attract them to buy and thus increase the company’s profits and revenue. The
company sell these products mostly in the Eastern countries, and are finding opportunities to
further it to overseas like western countries. We personally think that there is a great
business opportunity for Apollo company in this market today. In this age of globalization,
people do more emphasize on health care and tend to have healthier food. With this, Apollo
offers products that are high in the vitamin and fibre and carbohydrate needed in our bodies.
From the changes of the people view and trend, we found that the products that highly focus
on health will gain high demand in market todays. Therefore, Apollo products will definitely
fulfill the needs and satisfaction of people nowadays.

 
 

Recommedations 

We recommend that Apollo Food Holdings Berhad can produce sugar free products because
people nowadays more emphasize on the healthy lifestyle. Apollo Food Holdings Berhad
can expand their market very effectively through this way. Furthermore, Apollo Food
Holdings Berhad can make a giveaway activities promote their products. For example, they
can ask the consumer to follow their official page in social media before they giveaway their
products in order to promote their products and develop their market. Lastly, I recommend
Apollo Food Holdings Berhad can make a food tasting activity in any supermarket to attract
people to buy their products.

 
Appendix 

Profitability ratios (2012) 

N et prof it af ter taxation


ROE = Average shareholders f unds
×100
$ 21,741,325
= $ 211,805,826.5 ×100

= ​10.27%

N et prof it bef ore interest and taxation


ROA = Average total assets ×100
$ 28,593,663
= $ 237,109,560 ×100

= ​12.06%

N et prof it bef ore interest and taxation


Return on capital employed = (Owners equity+N on−current liabilities) ×100
$28,593,663
= $215,133,353+$17,702,542 ×100

= 12.28%

N et prof it bef ore interest and taxation


N et P rof it M argin = Sales ×100
$28,593,663
= $200,548,462 ×100

= 14.26%

Gross prof it
Gross P rof it M argin = Sales ×100
$45,092,996
= $28,593,633 ×100

= 22.48%

Liquidity ratios (2012) 

Current assets
C urrent ratio = Current liabilities
$103,060,858
= $7,611,750

= 13.54 : 1

Current assets (excluding inventory & prepayments)


Acid test ratio = Current liabilities
$103,060,855−$17,221,363−$114,172
= $7,611,750

= 11.26 : 1

Operating cash f lows


C ash f lows f rom operation ratio = Current liabilities
$28,098,646
= $7,611,750

= 3.69 : 1
Profitabilty ratios (2013) 

N et prof it af ter taxation


ROE = Average shareholders f unds
×100
$32,083,145
= $222,198,332.5 ×100

= 14.44%

N et prof it bef ore interest and taxation


ROA = Average total assets ×100
$ 42,449,536
= $ 247,747,079 ×100

= 17.13%

N et prof it bef ore interest and taxation


Return on capital employed = (Owners equity+N on−current liabilities) ×100
$42,449,563
= $230,182,760+$17,242,460 ×100

= 17.16%

N et prof it bef ore interest and taxation


N et P rof it M argin = Sales ×100
$42,449,563
= $222,745,970 ×100

= 19.06%

Gross prof it
Gross P rof it M argin = Sales ×100
$62,620,585
= $222,745,970 ×100

= 28.11%

Liquidity ratios (2013) 

Current assets
C urrent ratio = Current liabilities
$121,836,462
= $8,847,696

= 13.77 : 1
Current assets (excluding inventory & prepayments)
Acid test ratio = Current liabilities
$121,836,462−$19,893,955−$350,627
= $8,847,696

= 11.48 : 1

Operating cash f lows


C ash f lows f rom operation ratio = Current liabilities
$21,595,475
= $8,847,696

= 3.57 : 1

Profitability ratios (2014) 

N et prof it af ter taxation


ROE = Average shareholders f unds
×100
$33,470,740
= $236,928,592.5 ×100

= 14.13%

N et prof it bef ore interest and taxation


ROA = Average total assets ×100
$ 43,605,431
= $ 262,984,689.5 ×100
= 16.58%

N et prof it bef ore interest and taxation


Return on capital employed = (Owners equity+N on−current liabilities) ×100
$43,605,431
= $243,674,425+$16,225,809 ×100

= 16.78%

N et prof it bef ore interest and taxation


N et P rof it M argin = Sales ×100
$43,605,431
= $220,713,333 ×100

= 19.76%

Gross prof it
Gross P rof it M argin = Sales ×100
$64,146,256
= $220,713,333 ×100

= 29.06%

Liquidity ratios (2014) 

Current assets
C urrent ratio = Current liabilities
$135,431,569
= $9,884,329

= 13.70 : 1

Current assets (excluding inventory & prepayments)


Acid test ratio = Current liabilities
$135,431,569−$18,790,244−$1,000,000
= $9,884,329

= 11.70 : 1

Operating cash f lows


C ash f lows f rom operation ratio = Current liabilities
$46,529,604
= $9,884,329

= 4.71 : 1
Profitability ratios (2015) 

P rof it af ter taxation


ROE = average shareholder f und
×100
$ 25,293,936
= $ 224,053,378 ×100

= 10.28%

N et prof it bef ore interest & taxation


ROA = Average total assets ×100
$ 34,056,071
= $ 272,038,466.5 ×100

= 12.52%

N et prof it bef ore interest & taxation


Return on capital employed = (Owner equity + N on−current liabities) ×100
$ 34,056,071
= $ 248,432,331+$14,333,000) ×100

= 12.96%

N et prof it bef ore interest & taxation


N et P rof it M argin = Sales ×100
$ 34,056,071
= $ 212,6262,773 ×100

= 16.02%
Gross prof it
Gross P rof it M argin = Sales ×100
$ 56,310,598
= $ 212,626,773 ×100

= 26.48%

Liquidity ratios (2015) 

Current assets
C urrent ratio = Current liabilities
$ 114,619,971
= $ 11,527,039

= 12.55 : 1

Current asset (excluding inventory & prepayment)


Acid test ratio = current liabilities
$ 144,619,971−$19,362,334−$884,615
= $ 11,527,039

= 10.79 : 1

Operation cash f lows


C ash f lows f rom operations ratio = Current liabilities
$ 35,698,484
= $ 11,527,039

= 3.10 : 1
Profitability ratios (2016) 

P rof it af ter taxation


ROE = Average shareholder f und
×100
$ 29,742,425
= $ 252,996,456.5 ×100

= 11.76%

N et prof it bef ore interst & taxation


ROA = average total assets ×100
$ 40,042,605
= $ 278,714,639.5 ×100

= 14.37%

N et prof it bef ore interst & taxation


Return on capital employed = (Owner equity+N on−current liabilities) ×100
$ 40,042,605
= $ 257,560,582+$13,598,795 ×100

= 14.77%

N et prof it bef ore interst & taxation


N et P rof it M argin = Sales ×100
$ 40,042,605
= $ 208,185,792 ×100

= 19.234%

Gross prof it
Gross M argin = Sales ×100
$ 57,031,641
= $ 208,185,792 ×100

= 27.39%

Liquidity ratios (2016) 

Current assets
C urrent ratio = Current liabilities
$ 162,364,323
= $ 11,977,532
= 13.56 : 1

Current asset (excluding inventory & prepayment)


Acid test ratio = Current liabilities
$ 162,364,323−$ 18,148,402−$ 769,231
= $ 11,977,532

= 11.98 : 1

Operation cash f lows


C ash f lows f rom operations ratio = Current liabilities
$ 35,698,484
= $ 11,977,532

= 3.17 : 1

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(n.d.). Retrieved from WorldWide company profile: 
http://listofcompanies.co.in/apollo-food-holdings-berhad/ 

Annual Report 2015. (2015). ​Apollo.​  


doi:http://markets.ft.com/data/equities/tearsheet/profile?s=APOLLO:KLS 

Apollo. (2016). doi:http://www.apollofood.com.my/about_us.php  

Apollo Food Holdings Bhd. (2016). ​Financial Times​. 


doi:http://markets.ft.com/data/equities/tearsheet/profile?s=APOLLO:KLS 
Azmi, A. (2014). Analysis Of The Company. 

BERHAD, A. F. (2009). Retrieved from 


http://www.apollofood.com.my/announcement.php 

BERHAD, A. F. (2009). APOLLO. ​the sign of good taste !  

Börse: Aktien, Kurse und Nachrichten. (2016). Retrieved from 


http://www.4-traders.com/APOLLO-FOOD-HOLDINGS-BERH-20699115/company/ 

Financial Times. (2016). 

Paradise, M. S. (24 10, 2013). Retrieved from Apollo Food Holdings Berhad (APOLLO): 
http://linlin941022.blogspot.my/2013/10/apollo-food-holdings-berhad-apollo.html