Factory Shut Down Amid Torrential Rains, Affecting 10% of Supply for FY2022
Gardenia Malaysia, a subsidiary of the mainboard-listed QAF, has announced the closure of one of its bakery factories in the country due to severe flooding caused by recent torrential rains. The closure, which will last for an undetermined period, is expected to disrupt approximately 10% of Gardenia Malaysia’s total supply for FY2022 until the damaged production lines are repaired or replaced.
While no employees were injured, the extent of the damage is still being evaluated. As of November 30, the factory’s inventory and assets, including property, plant, and equipment, were valued at RM55 million (S$17.8 million). Despite the setback, the other six Gardenia factories in Malaysia remain operational.
QAF has notified its insurers and is in the process of seeking recovery through its insurance policies. Any payouts received will be treated as income. In the meantime, the company has increased production at its unaffected factories and adjusted the product mix to minimise supply disruptions. However, the full impact of the factory shutdown cannot yet be quantified, as the situation is still unfolding. QAF’s shares closed at S$0.88 on Tuesday, showing no change.
