CAB Cakaran Bhd group managing director Christopher Chuah Hoon Phong
KUALA LUMPUR: CAB Cakaran
Bhd expects the poultry market in Malaysia to remain resilient, supported by steady demand for poultry products as an affordable and essential source of protein.
“Overall consumption is projected to remain robust, driven by population growth, urbanisation, and shifting dietary preferences toward protein-rich diets. In light of this steady demand, broiler selling prices are expected to remain stable,” the integrated poultry farming and food processing company said in a filing with Bursa Malaysia.
CAB noted that the industry still faces growing challenges. The end of government subsidies last year has reduced profit margins for local producers. Also, more frozen chicken imports, especially from Thailand, are putting downward pressure on local poultry prices.
“Moreover, after a period of consistent decline over the past two years, feed costs are anticipated to trend upward. As feed remains the single largest cost component in poultry production, this could further challenge the industry’s profitability in the near term,” it said.
CAB reported a 30.8% increase in net profit to RM19.75mil for the second quarter ended March 31, 2025 (2Q25). This was on the back of a marginal 0.2% decrease in revenue to RM573.72mil.
In the first six months to March 31, CAB recorded a 10.4% drop in net profit to RM47.93mil on the back of a 3.92% growth in revenue to RM1.17bil.
The group’s financial position remained strong for the period, with CAB’s cash position increasing to RM209.69mil, from RM180.97mil previously.
“We are proud with our second quarter results for 2Q25, as we have been operating without subsidies for five quarters now, since the discontinuation of government subsidies. The growth, especially on an operating level, shows that we are efficient and can thrive without subsidies,” group managing director Christopher Chuah Hoon Phong said in a separate statement.
“We started off as a broiler company, but today, we are an integrated food company with the food processing and retail divisions.
“We are optimistic of the group’s performance in the coming quarter, and will proactively undertake strategies to support sustainable growth and long term value creation.”
