KUALA LUMPUR (Aug 22): CCK Consolidated Holdings Bhd’s net profit climbed 44.28% to RM16.76 million for the second quarter ended June 30, 2023 (2QFY2023) from RM11.61 million a year earlier, thanks to stronger consumer demand for its retail segment and contributions from its Indonesia-based prawn processing unit.

Revenue rose 17.67% to RM247.11 million from RM210 million, according to the poultry firm and supermarket operator’s bourse filing on Tuesday (Aug 22).

The group said stronger consumer demand led to the retail segment’s revenue rising 11.4% to RM191.58 million from RM172.04 million previously. No additional stores were opened during the three-month period under review.

The group's prawn segment’s revenue increased 331.18% to RM22.84 million from RM5.3 million in 2QFY2022, mainly due to contributions from PT Bonanza Pratama Abadi that boosted the segment’s export volume to Japan, Taiwan, South Korea and Hong Kong.

The poultry segment’s revenue fell 4.87% to RM26.18 million from RM27.52 million, due to a “slight downtick in sales volume”. However, the group noted that demand for its poultry products from institutional clients and via its retail stores (intersegment sales) remained robust.

On its prospects, CCK Consolidated said that while consumer sentiment has normalised post-Covid-19, the volatility of the US dollar against the ringgit remains a concern as it leads to fluctuations in prices of corn and soy.

“This is further exacerbated by heightened inflation that has led to an overall increase in raw material input costs as well as along the supply chain.

"This phenomenon is likely to persist into the remaining quarters of the year and will affect the cost structures of both the retail and poultry segments,” it added.

Addressing this, CCK Consolidated said it will take proactive steps to mitigate any risks that arise whilst optimising efficiency and productivity across all its key business segments.

“Taking into account the above, the board is cautiously optimistic with regard to the remaining quarters of the year,” it said.

Shares in CCK Consolidated ended half a sen or 0.61% lower at 81.5 sen, giving the group a market capitalisation of RM510.9 million.