KUALA LUMPUR: CAB Cakaran Corporation Bhd (CCB) posted a net profit of RM10.71 million for the fourth quarter (Q4) ended September 30, 2023 (FY23), up 39.5 per cent year-on-year (YoY) from RM7.68 million a year ago.
CCB's net profit would have been higher if not for a deferred tax expense of RM14.36 million in Q4 FY23, primarily attributable to the full utilisation of certain tax credits.
Revenue rose 12.5 per cent YoY to RM557.18 million, up 12.5 per cent from RM495.50 million a year ago.
For FY23, CCB posted a net profit of RM107.25 million, an increase of 85.8 per cent from a year ago.
The improved performance was driven by increased demand, higher selling prices, and lower production costs.
Revenue for FY23 rose 14.9 per cent YoY to RM2.25 billion, the highest in the company's operating history.
CCB, one of Malaysia's largest food producers, continues to see financial position improvement, with cash position rising 51.4 per cent YoY to RM163.05 million as of September 30, 2023, up from RM107.68 million a year earlier.
With CCB's record results, its price-to-earnings (P/E) ratio now drops to approximately 4.7x, a substantial discount compared to its industry peers that currently trade at 8x-9x P/E.
Group managing director Christopher Chuah Hoon Phong said FY23's solid financial performance reflects the company's continuous commitment to operating efficiency, improved economies of scale, and long-term, sustainable growth.
"This is the highest annual net profit in our over-40-year history and the second year where the CCB has set a new revenue record.
"With our strong cash position, we seek to accelerate our growth through strategic mergers and acquisitions across the food industry.
"We remain very excited about our venture in Indonesia with the Salim Group, our partner and shareholder. After some years of delay due to the pandemic, 2024 will be the year our Indonesian expansion goes full swing," Chua said in a statement.
With its population size, Indonesia is a significant market CCB views as its next growth engine.
With the backing of Salim, coupled with CCB's strength in integrated poultry farming and food processing, the company will be able to unlock the potential of this market, Chua noted.