CAB Cakaran Corporation Bhd, a Bursa Malaysia Main Market listed integrated poultry producer, registered a net profit of RM13.74 million for its 3nd quarter ended 30 June 2017 (3QFY2017), representing a 162% increase from RM5.23 million in the corresponding period last year. Its revenue stood at RM382.27 million, a 40.5% increase as compared to RM272.08 million a year ago.
In a filing to Bursa Malaysia, the largest broiler in Malaysia said that the increase in its revenue and profit for the reporting period was mainly due to the strong sales growth of the integrated poultry farming, processing division and the inclusion of sales from the newly-acquired subsidiary, Farm’s Best Food Industries Sdn Bhd (FBFI).
Moreover, it is due to the increase in the production of broilers and higher trading volumes of feeds from integrated poultry farming and processing division. Higher revenue is also contributed by the higher average selling price of RM5.01 per kg for broilers as compared to RM4.50 per kg in the prior year corresponding quarter.
For its 9-month financial result ended 30 June 2017 (9MFY2017), the Company registered a net profit of RM31.01 million, surge 329% from RM7.23 million. This translates to an improved earnings per share (EPS) of 17.21 sen, as compared to 4.58 sen in the corresponding period last year.
The board of directors of CAB Cakaran said: “We expect the integrated poultry farming and processing division to maintain its strong performance in the next quarter given that the shortfall in the supply of broilers in the market will continue and hence the current high average selling price of broilers can be sustained. On our supermarket division, we will focus on its promotional activities in the face of intense competition in order to maintain sales.”
The Company is reviewing its strategies for value added food products manufacturing and trading division to undertake measures to improve the operational efficiency of FBFI. It is expected that the improvement in its performance may only be realised in the next financial year.