PETALING JAYA: CAB Cakaran Corporation Bhd, one of Malaysia’s largest food producers, reported a net profit of RM33.89 million for the first quarter ended Dec 31, 2024 (Q1’25).
The 31.96% drop from a net profit of RM49.8 million in Q1’24 is mainly due to government subsidies amounting to RM39.8 million received in the first quarter of FY24. Excluding the subsidies in Q1’24, CAB Cakaran’s profit before tax actually increased 76% to RM45.3 million in Q1’25.
The improvement, CAB Cakaran said, is mainly attributed to higher average selling prices of broilers and lower feed costs.
Meanwhile, revenue increased 8.23% to RM593.61 million in the first quarter of FY25, from RM548.48 million in the same quarter of the previous corresponding period. This was largely due to increased sales volumes of chicks, feed and processed chicken, along with higher average selling prices for broilers.
The retail division also showed topline growth. It reported a higher revenue of RM36.51 million primarily due to sales from two new outlets. It recorded profit from operations of RM0.31 million although this was partially attributed to an insurance payout of RM400,000. The group now has a total of 15 outlets throughout Peninsular Malaysia.
CAB Cakaran’s financial position remained strong, with its cash position standing at RM188.06 million as of the period.
Group managing director Christopher Chuah Hoon Phong said: “We are proud with our first quarter results for Q1 FY2025 as we have been operating totally without subsidies over the last one year. The growth of 76% in our profit before tax numbers, if excluding subsidies in the previous period, show that we can are efficient and can thrive without subsidies.
We started off as a broiler company, but today, we are an integrated food company. We also have the food processing and retail divisions which are both growing fast. Due to strong demand, we now have three food processing factories.
“On the retail side, today we have 15 retail outlets under the Home Mart and Jaya Gading brandname. The growth and reception has been encouraging. Our aim is to have 50 to 100 outlets over the next five years.”
Lastly, he added, CAB Cakaran is “very excited” about its venture in Indonesia with the Salim Group, its partner and shareholder.
