Bursa Malaysia Main Market-listed Auro Holdings Berhad is diversifying its portfolio by entering the food and beverage (F&B) sector through a strategic partnership with the HEYTEA franchise. This move aims to enhance Auro's financial performance by tapping into the growing demand within the F&B industry.

Auro has secured multiple franchise agreements with HK Heycha Limited, granting it the rights to operate HEYTEA stores across Malaysia. The company launched its first HEYTEA store at The Exchange TRX Mall in December 2023. This was followed by openings in prominent locations such as Mid Valley Megamall, Sunway Pyramid, and 1 Utama.

Looking ahead, Auro plans to further expand its HEYTEA footprint with new stores set to open in Peninsular Malaysia, including at Genting Highlands Premium Outlets, Sunway Velocity Mall, and Gurney Plaza. These additions are expected to significantly boost the company's net profits and overall revenue.

Tan Wye Chuan, Executive Director of Auro Holdings Berhad said, "Our move into the F&B sector is a strategic decision to capitalise on the vast opportunities within this industry.

The positive reception of our initial stores highlights the potential of this venture. We are confident that our expansion will drive substantial revenue growth and strengthen our market presence."

Tan also noted that the diversification aligns with Auro's vision of becoming a more resilient and growth-oriented company, committed to delivering sustainable value to its shareholders.

The success of this diversification is supported by Auro's experienced management team. Tan Jyy Yeen, with extensive experience in business management within the hospitality sector, and Cheng Siew Ling, F&B Operation Manager with a strong background in managing F&B outlets, will lead the implementation and growth of the HEYTEA franchise in Malaysia.

The outlook for Malaysia's F&B industry is promising, with projected growth of 7.9% in 2024, driven by increasing disposable income and the resurgence of tourism. This growth presents a significant opportunity for Auro Holdings Berhad to capture a larger market share in the F&B sector.