CAB CAKARAN REPORTS HIGHEST-EVER NET PROFIT IN FY2023
• FY2023 net profit rises 85.8% to RM107.25 million; revenue crosses RM2 billion for first time ever
• With cash of over RM160 million, CAB seeks synergistic M&A across the food industry
KUALA LUMPUR, 30 November 2023 — CAB Cakaran Corporation Berhad (“CAB” or “Group”), one of Malaysia’s largest food producers, reported a record-high net profit of RM107.25 million for the financial year ended September 30, 2023 (“FY2023”), an increase of 85.8% from a year ago. The improved performance was driven by increased demand, higher selling prices, and lower production costs. FY2023 revenue rose 14.9% year-on-year (“y-o-y”) to RM2.25 billion, the highest in the Group’s operating history.
For the financial period ended September 30, 2023 (“Q4 FY2023”), CAB reported a net profit of RM10.71 million, up 39.5% y-o-y from RM7.68 million a year ago. Q4 FY2023 revenue rose 12.5% y-o-y to RM557.18 million, up 12.5% from RM495.50 million a year ago.
CAB’s net profit would have been higher if not for a deferred tax expense of RM14.36 million in Q4 FY2023, which was primarily attributable to the full utilization of certain tax credits.
The Group’s financial position continued to improve, with CAB’s cash position rising 51.4% y-o-y to RM163.05 million as of September 30, 2023, up from RM107.68 million a year earlier.
With CAB’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 a range of 8x — 9x P/E.
Mr. Christopher Chuah Hoon Phong, Group Managing Director of CAB Cakaran Corporation Berhad, said:
“We are proud to end FY2023 with a solid financial performance. This is simply a reflection of our 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 Group has set a new revenue record.
Despite our strong results, CAB is not resting on its laurels. With our strong cash position, we are now seeking to accelerate our growth through strategic mergers and acquisitions across the food industry. Any acquisitions we make will be geared towards improving our ability to develop innovative products and create sustainable food solutions, in line with our vision to evolve into a world-class food conglomerate.
Lastly, 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. Indonesia, with its population size, is an extremely important market which we view as CAB’s next growth engine. With the backing of Salim, coupled with our strength in integrated poultry farming and food processing, we will be able to unlock the potential of this market.”
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