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Would Focus Point's F&B venture be a value creation or value destruction?
Focus Point Holdings Bhd. consists of two (2) business segments:
1. Spectacle/Eyewear
2. F&B, Komugi brand
Its eyewear business is doing good and a cash flow generator. Whereas its F&B segment still made the accumulated losses of RM30.39 million according to the below extracted CTOS LitE Report since year 2012/13.
Optical is clearly the Group’s main value creator for now, and the numbers already prove that through its record revenue and earnings in recent quarters.
As for F&B, the retail side is actually holding up reasonably well. The bigger drag has mainly come from the B2B side, which is a different model and naturally takes longer to scale.
Accumulated losses in F&B are also not unusual when a business is still expanding. That is quite normal for this type of segment, where upfront investment comes first and earnings only improve once scale kicks in.
So to label it as outright value destruction is too simplistic. A fairer assessment is that optical is carrying the Group today, while F&B adds diversification and longer-term upside. Once the B2B side improves, the earnings contribution from F&B should look very different.
