Wednesday, 10 December 2025

External markets offset domestic slowdown

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CCK expands its retail network to 79 touchpoints, adding new Fresh Mart outlets and supermarkets across Sarawak and Sabah.

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KUCHING: CCK Consolidated Holdings Bhd’s Indonesian manufacturing arm continued to outperform in 9M2025, helping cushion a slowdown in the Malaysian market.

For the January–September 2025 period, its operations in Pontianak, West Kalimantan, and Jakarta delivered a 9.8 per cent revenue increase to RM169 million. The segment contributed 21.5 per cent to group revenue of RM786.9 million, up from 19.4 per cent a year earlier.

“Demand for our in-house manufactured products in Indonesia remained strong,” said CCK.

The group said its significant investment to expand the Pontianak plant — completed in 2021 — had boosted production capacity and lifted sales of in-house sausage, nugget and other processed product brands.

In 2022, CCK acquired PT Bonanza, a shrimp processor for domestic and export markets. Its key products include frozen raw shrimp, frozen cooked shrimp and frozen ebi shrimp, mainly exported to Japan and Taiwan.

In 9M2025, the prawn segment posted an 8.7 per cent rise in sales to RM76.5 million, supported by stronger domestic demand in Indonesia. While exports to Japan, Singapore and Taiwan moderated, this was partly offset by higher shipments to Korea, China and Hong Kong.

Group net profit slipped to RM52.8 million (9M2024: RM64.5 million) as revenue eased slightly to RM786.9 million (RM791.8 million). Earnings per share weakened to 8.54 sen from 10.38 sen.

Retail — the group’s largest contributor — inched up to RM613.8 million (RM611.5 million), while the prawn segment improved to RM76.5 million (RM70.4 million). The poultry segment fell to RM83.8 million (RM94.1 million), and food service dropped to RM12.1 million (RM15.7 million).

In 3Q2025, net profit declined to RM17.5 million (3Q2024: RM23.3 million) despite a higher revenue of RM264.5 million (RM259.5 million).

CCK expanded its retail network to 79 touchpoints — comprising 69 Fresh Mart outlets, four CCK Local Supermarkets in Sarawak and Sabah, and six wholesale stores — up from 74 previously.

The group said 9M2025 revenue eased by RM4.87 million (0.6 per cent) due to weaker poultry and food service contributions, partly offset by growth in retail, prawns and the Indonesian business. Poultry sales slowed amid lower demand from institutional clients and weaker throughput at its own retail stores. The food service segment was hit by “weaker demand from government schools in Sarawak under supply contracts”.

“The retail segment reported a segment pre-tax profit of RM51.1 million in 9M2025, down 8.9 per cent from the same period last year. Profitability was impacted by lower sales volumes from our domestic retail network and strategic pricing adjustments aimed at enhancing competitiveness. However, strong contributions from our Indonesian operation helped cushion the impact,” said CCK.

On outlook, the group said cost pressures from inflation and currency volatility — particularly for corn and soy — continued to weigh on profitability. “We are addressing these through disciplined cost management, operational optimisation and strategic pricing.”

“Despite challenges, our integrated structure and targeted growth initiative supported a cautiously optimistic outlook for the coming quarter (4Q2025),” it added.

CCK said it remains focused on serving diverse customer segments while steadily expanding its retail footprint and strengthening supply chain efficiency.

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