KUCHING: CCK Consolidated Holdings Bhd’s Indonesian manufacturing operation has sustained its growth momentum, with a 15.1 per cent jump in revenue to RM55.5 million in second quarter ended June 30, 2025 (2Q2025) as compared to RM48.2 million a year ago, amidst an overall slowdown in group turnover to RM258.4 million from RM271.6 million.
Sales volume in Pontianak and Jarkata operations remained robust, driven by strong demand in in-house manufactured processed products, CCK said.
In 2Q2025, CCK recorded lower group net profit of RM17.82 million (2Q2024:RM19.77 million) in tandem with a RM13.2 million drop in group revenue.
Company’s earnings per share declined to 2.88sen from 3.18sen.
In the current quarter under review, the retail segment remained the main revenue earner, generating RM224 million (2Q2024:RM238.9 million), followed by poultry segment which contributed RM84.33 million (RM95.79 million), prawn segment RM28.99 million (RM28.76 million) and food services segment RM3.95 million (RM5.61 million).
The retail segment reported lower pre-tax profit of RM15.85 million (RM17.92 million) but the poultry and prawn segment pre-tax profit surged to RM4.39 million (RM3.91 million) and RM5.5 million (RM3.13 million) respectively.
The food services segment also improved its pre-tax profit to RM392,000 (RM376,000).
The corporate segment was back to profitability, with pre-tax profit of RM28,000 on revenue of RM347,000, a reversal from pretax loss of RM969,000 on revenue of RM136,000 in 2Q2024.
CCK attributed the weaker performance of the retail segment to lower sales volume and strategic pricing adjustments aimed at enhancing competitiveness across domestic retail network.
“However, the strong contributions from our Indonesian operations helped cushion the impact,” the integrated poultry firm said in explanatory notes to its financial results.
CCK said the poultry segment had improved its earnings as a result of a favourable movement in feed input costs, effective cost management initiatives and dynamic pricing strategies, which helped preserve profit margins.
The better performance of the prawn segment was supported by improved average selling prices despite a moderation in sales volumes to key export markets.
As compared to the immediate preceding quarter (1Q2025), CCK posted flat earnings in 2Q2025.
Group after-tax profit increased marginally to RM20.48 million (1Q2025:RM20.19 million) despite lower revenue at RM258.4 million (RM264 million).
In first half of 2025 (1H2025), CCK group net profit fell to RM35.32 million (1H2024:RM41.14 million) as revenue dropped by 1.9 per cent to RM522.43 million (RM532.3 million).
“The softer performance (1H2025) was mainly attributable to lower contributions from retail, poultry and food services segments, partly offset by stronger results from the prawn segment and our Indonesian operations,” said the company.
The retail segments posted lower revenue of RM409.3 million (RM412.2 million), resulting in a 11.1 per cent drop in pre-tax profit to RM33.3 million due to moderation in consumer spending, normalisation from contributions from the group’s established retail network, lower sales volumes in both the retail and wholesale channels.
However, demand for the group’s in-house manufactured processed products in Indonesia remained strong.
“Our Indonesian manufacturing operations, supported by additional production capacity that came on stream in January 2021, continued to capitalise on this demand.
Revenue from the Indonesian manufacturing operations (Pontianak and Jakarta) grew 12.6 per cent to RM111.2 million, representing 21.3 per cent of group revenue in 1H2025 (1H2024:18.5%),” added CCK.
The poultry segment revenue declined by 11.4 per cent to RM167.5 million in 1H2025 because of weaker sales from both institutional clients and the group’s own retail stores.
On the other hand, the prawn segment did better, with its revenue climbed by 6.4 per cent to RM50.4 million in 1H2025, thanks to higher average selling prices.
While export volumes to Japan, Taiwan and Singapore moderated, this was partially offset by higher shipments to Korea and Hong Kong.
The food services segment saw its revenue dropped to RM7.4 million from RM10.5 million in 1H2024 due to reduced demand from government schools in Sarawak covered under supply contracts.
On prospects going forward, CCK said expansion of the group’s retail footprint remains part of its long-term growth strategy though with a measured approach.
“We are prioritising economies of scale and supply chain streamlining to strengthen capacity, improve productivity and better serve changing consumer preferences.”
Saying that cost pressure remains a challenge for the group, the company said high inflation, combined with currency volatility, particularly the movement of the US dollar to the ringgit, continues to affect input costs, such as corn and soy, which form a major component of poultry feed.
These fluctuations have a direct impact on the group’s profitability as poultry products account for about half of the group’s retail sales.
“To mitigate these effects, we are implementing prudent cost control, improving operational efficiency and adopting strategic pricing measures to remain competitive without compromising value to our customers.
“In Indonesia, our manufacturing operations, built over more than a decade of sustained double-digit growth, continue to deliver steady results.
The recent partial divestment of our stake in PT Adilmart to Creador marks a significant milestone, creating new opportunities for capacity expansion, market development and brand enhancement,” added CCK.
CCK remains a cautiously optimistic outlook for the group performance in the next few quarters.
