CCK records positive 4Q despite weak consumer sentiments

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KUCHING: CCK Consolidated Holdings Bhd (CCK) earnings for the fourth quarter of 2016 (4Q16) ended December 2016 gained 19 per cent year-on-year (y-o-y) to RM5 million from RM4.2 million in 4Q15 despite registered lower revenue.

The company in a filing to Bursa Malaysia on February 23 said 4Q16 revenue decreased by 2.8 per cent y-o-y to RM124.27 million from RM127.84 million generated in 4Q15.

Commenting on the group’s revenue for 4Q16, CCK said under the current economic conditions where consumers were generally cautious in their spending, the result achieved was comparable with RM127.836 million recorded for the corresponding period last year.

The company observed that its retail segment continued to lead the group with an increase in revenue of 13.7 per cent resulting from marketing and pricing strategies aimed at maximising results in these challenging times.

CCK pointed out that its prawn segment has showed an improvement in performance with exports to Australia, Japan and China.

For financial year 2016 (FY16) ended December 2016, CCK said revenue grew by 4.8 per cent y-o-y to RM533.73 million while net profit rose by 32 per cent y-o-y to RM18.29 million.

On the group’s prospects, CCK believed during these economically challenging times, the group aimed to remain focused in managing its operating costs and marketing strategies to increase its market share.

With the recent investment in Gold Coin Sarawak Sdn Bhd, CCK said the group hoped to maximise the advantages of having a fully integrated poultry chain and expected the performance of the coming financial year to be better than that of last year’s.