KUALA LUMPUR: CAB Cakaran Corp Bhd
said the demand for chicken meat is expected to remain high as it is the cheapest source of meat protein.
“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 integrated poultry company said.
The government had in February 2023 announced its intention to circumvent chicken and egg shortages by removing price caps in June 2023 as well as by cultivating grain corn locally to mitigate higher prices of chicken feed imports.
“As and when implemented, the uplift of the price control policy may alleviate the constraints on the group's profit margins, thereby improving the group's profitability and financial performance moving forward,” CAB said.
In the second quarter ended March 31, CAB’s net profit surged more than 4-fold to RM28.5mil, or earnings per share of 4.07 sen compared with RM6.7mil, or 0.96 sen a year prior.
Revenue for the quarter jumped 20% to RM570.9mil from RM475.8mil.
For the first six months, CAB posted a net profit of RM70.4mil on revenue of RM1.13bil.
Commenting on its financial performance, group managing director Chuah Hoon Phong said: “In line with the stabilising business landscape, the poultry industry, including CAB, is showing signs of recovery post-COVID. Poultry output had improved after the easing of the pandemic-related measures and the arrival of foreign workers since October 2022 had helped to accelerate production.”
