KUALA LUMPUR: SCH Group Bhd (SCH), the manufacturer and distributor of fertilizers could see an impact on business in the coming months if the Coronavirus (Covid-19) outbreak is not effectively contained.
Director Datuk Eddie Ong said the company could have challenges should there be delays of raw material shipments from China stemming from the outbreak.
"2020 has started well but maybe impacted by the Covid-19. If shipment of raw materials from China is delayed, it will affect our production and sales” he said after the company’s annual general meeting here today.
He said the company could not assess the impact of Covid-19 but will continue to monitor the situation.
Apart from fertiliser manufacturing and distribution, SCH’s other main businesses comprises of heavy machinery and quarry supplies and equipment rental solutions.
Separately, group chief executive officer Michael de Souza said "contribution from our rental solutions business is likely to be differed with the postponement of events in Malaysia and the region due to the Covid-19.
The team will focus our efforts on utilising our equipment outside the events industry during this period".
SCH recorded a revenue of RM116.9 million for the financial year 2019 as compared to RM33.2 million in financial year 2018, representing an increase of RM83.7 million or 252.1 per cent.
The increase in revenue was contributed by the two newly acquired subsidiary companies - PK Fertilizers (Sarawak) Sdn Bhd (PKFS) and TK Rentals Sdn Bhd (TK Rentals).
Revenue generated from PKFS became the largest contributor of income for SGB, making up RM73.5 million or 62.9 per cent of the group’s total revenue in FY 2019.