Beverage manufacturer C.I Holdings Bhd will focus on its non-carbonated drinks segment this year namely, product types like juices, tea and isotonic drinks.

'We commissioned our RM45 million non-carbonated production facility last month. Its production capacity can give us another RM300 million in turnover,' group managing director Datuk Johari Abdul Ghani told reporters today.

He added, previously, there had been some production constraints but the new facility would give the company ample space to increase capacity.

'We will look into the Asian drinks category in the next 12-months. Our priority is the juice, tea and isotonic drinks segment which are higher growth categories offering more lucrative margins,' he said after the company's annual general meeting (AGM) today.

Speaking on potential mergers and acquisitions (MandA), he said the company was looking at companies centred around food related products.

'If there is any MandA, these companies can leverage on our distributionchannel and enjoy the benefit of its strength,' he explained.

Currently, C.I.Holdings has about 42,000 distribution outlets throughout the country, and aims to increase the number to 45,000 for FY11.

Johari is confident of maintaining the company''s strong growth momentum aswell.

'If you look at our first quarter results to be announced next week, it shows the same trend.

'With a new production line capable of generating RM300 million in sales, we are on a growth phase,' he said.

C.I.Holdings expects to maintain its 10 per cent allocation from revenue for advertising and promotion activities for FY11. Last year, it had spent about RM50 million, on marketing activities.

At the AGM, shareholders had approved a final pre-tax dividend of 7.0 sen per share, bringing its full year dividend to 11.0 sen per ordinary share.

For its financial year ended June 30, 2010, the company recorded a pre-tax profit of RM48.035 million, a 72 per cent increase from the RM27.96 million recorded previously.

The profit was achieved on the back of a total revenue of RM516.4 million, a 43 per cent increase from RM362.98 million previously. -- Bernama