Friday 29 Mar 2024
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KUALA LUMPUR(Nov 29): CAB Cakaran Corp Bhd’s net profit for the fourth financial quarter ended Sept 30, 2018 plunged 98% to RM508,000 from RM27.18 million a year ago, on lower average selling price of broilers which fell to RM4.52 per kg from RM4.99  per kg last year as well as an increase in feed and distribution costs.

Its supermarket division also suffered a small loss compared to a profit a year ago, mainly due to the lower margin achieved by certain outlets as a result of promotional activities undertaken to increase sales during the quarter under review.

Group revenue increased by 13.3% in 4QFY18 to RM465.83 million from RM411.2 in 4QFY17, owing to strong sales growth in its integrated poultry division.

For its full financial year ended Sept 30, 2018 (FY18), CAB Cakaran reported a 49.5% decline in annual net profit to RM29.39 million, although revenue grew by 17.3% to RM1.75 billion.

Earnings per share for the period came in at 4.65 sen from 10.12 sen a year ago.

Despite the challenging landscape, CAB Cakaran is confident that with its market presence and economies of scale in production, the integrated poultry division will continue to be the main contributor to the group’s profit.

The supermarket division is expected to face intense competition and will most likely continue to undertake promotional activities to maintain its market share.

“These activities will have a negative impact on margins and management will put more emphasis on cost saving measures in order to return to the black. This division is not expected to show much improvement in its performance in the near future,” the group said.

CAB Cakaran shares closed down 0.5 sen (0.8%) at 65.5 sen today, for a market capitalisation of RM432 million.

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