KUALA LUMPUR: CAB Cakaran Corp Bhd expects the local poultry industry continues to face challenges such as high cost of feed, outbreak of diseases and changes in weather condition.
“The continuing subsidy given by the government to the industry will ensure that the poultry farmers will not be adversely affected by these challenges,” the poultry group said in a filing with Bursa Malaysia.
CAB Cakaran said the demand for chicken meat is expected to remain high as it is the cheapest source of meat protein and the fact that per capita consumption of chicken meat in Malaysia is around 50kg, one of the highest in the world.
“With a strong demand, the price of broiler is expected to remain high in the next quarter as the supply situation is still unstable.”
“The management will pay close attention to the upstream activities to ensure that the group is in a position to meet its production target as well as to take necessary actions to improve operational efficiency in the group,” it added.
In the first quarter ended Dec 31, CAB Cakaran’s net profit surged to RM41.9mil from RM18.2mil a year ago.
For the quarter under review, its earnings per share came to 5.97 sen as compared with 2.61 sen in the comparative quarter.
Its revenue rose 12.8% to RM557.3mil against RM494.2mil a year ago, mainly due to higher sales achieved by most of the divisions, especially the integrated poultry division.