CCK 3Q net profit rises 20% to RM9.25mil

PETALING JAYA: East Malaysian retail chain store and supermarket operator CCK Consolidated Holdings Bhd posted a 20.2% year-on-year increase in net profit to RM9.25mil for the third quarter ended September 30, 2020.

This was on the back of an uptick in gross profit margin at 20.8% due to favourable product mix and a decrease in overall operational expenses as a result of ongoing cost rationalisation exercises.

On a cumulative nine-month basis, CCK’s net profit was up 4% at RM 24.88mil, as compared to the same period last year.

In a press release on Monday, CCK group managing director Tiong Chiong Hiiung said the commendable set of results was achieved despite the challenging times due to the Covid-19 pandemic.

“The resilience of our retail segment has driven profitability and is a testament to the robustness of our vertically integrated business model.

“During the quarter, we launched CCKLocal with much success -- this is our maiden venture into supermarkets.

“This will allow us to serve our customers better by providing more stock-keeping units (SKUs) under one roof and provide a much more comfortable shopping experience.

“Given the success of CCKLocal, plans are being drawn up for more launches in the near-future.

“Strategically, this will drive our topline growth and economies of scale in the long-run; thereby creating value for our shareholders and stakeholders as we strive to deliver sustainable earnings growth,” he said.

During the quarter, the group launched its first supermarket, CCKLocal in Kuching on July 31, 2020.

This marked a key milestone for CCK as it seeks to replicate its success in smaller format chain stores to supermarkets.

Following the launch in Kuching, the group recently launched a second CCKLocal in Kota Kinabalu on November 9, 2020.

The launch of both supermarkets adds two locations to the group’s chain of stores, bringing the total up to 65 stores throughout East Malaysia.

CCK also boasts a fully integrated supply chain consisting of feed mill, breeder farms, hatchery, broiler farms, layer farm and abattoirs supporting their retail outlets.

As at September 30, 2020, the group’s balance sheet remained robust, sporting a cash position of RM47.3mil.

Meanwhile, CCK’s gearing remains low at 0.17 times against shareholders funds of RM287.3mil, whilst the current ratio stood at two times.

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