CAB Cakaran’s 4Q profit soars 175% to RM10.5 million

by **Cals** Fri 29 Nov 2013, 18:22

Business & Markets 2013

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Friday, 29 November 2013 15:44

KUALA LUMPUR (Nov 29): CAB Cakaran Corporation Bhd posted a net profit of RM10.5 million for its fourth quarter ended 30 Sept, a leap of 175% from RM3.8 million in the previous year’s corresponding quarter.

4QFY13 revenue had also increased by 23% to RM169.3 million from RM137.4 million in 4QFY12.

“The higher revenue in the current quarter as compared to the prior year’s corresponding quarter was mainly due to the increase in sales of the integrated poultry farming and processing division,” said CAB in its report.

However, its supermarket division, value added food manufacturing and trading division and marine products division had recorded losses, which slightly offset the profit achieved by the integrated poultry farming and processing division.

“The integrated poultry farming and processing division is expected to face an oversupply of broilers situation in the next quarter and this will have a negative impact on the bottom line,” said the group on its prospects.

The group added that the expected reduction in the price of feed may partly offset the softening in the price of broilers.

“The management being cognizant of this market scenario will take the necessary measures to mitigate any adverse effect on the group’s profitability.

In the twelve months to Sept 2013, net profit totalled RM11.9 million compared to a net loss of RM3.0 million in the previous year. Cumulative revenue was at RM607.7 million, up 14% from the previous corresponding period.