CAB Cakaran reports RM38.38mil net profit in 1Q24


CAB Cakaran Corp Bhd managing director Christopher Chuah Hoon Phong.

KUALA LUMPUR: CAB Cakaran Corp Bhd is expected to benefit from the recent shortages of pork and eggs, both staple foods for Malaysians in the near term.

Group managing director Christopher Chuah Hoon Phong said these shortages should sustain high demand for chicken meat, which supports the outlook for broiler prices.

“We will continue to seek strategic mergers and acquisitions (M&A) opportunities to develop innovative products and create sustainable food solutions. With our strong cash position, we have the firepower to catalyze our evolution into a world-class food conglomerate.

“On the expansion front, we continue to work towards launching Phase 1 of our venture in Indonesia with the Salim Group, our partner and shareholder. We have proven we can win in Malaysia, and have now set our eyes on replicating this model globally,” Chuah said in a statement.

CAB Cakaran posted a net profit of RM38.38mil for the fiscal quarter ended Dec 31, 2023 (1Q24), an 8.3% decline from a year ago, mainly due to a lower year-on-year (YoY) gain on fair value adjustment of the group's biological assets, coupled with higher tax expenses.

Its revenue dipped 1.6% YoY to RM548.48mil, dragged by a decline in the ASP for chicks and broilers. On a year-on-year basis, the average selling price of chicks and broilers fell 12.7% and 5.7%, respectively.

The group’s financial position continued to improve, with CAB’s cash position rising 45.2% y-o-y to RM202.61mil as of Dec 31, up from RM139.58mil a year earlier.

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CAB Cakaran , chicken , broiler

   

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